No, Your homeowners insurance is a type of "Hazard Insurance", you must continue to make your mortgage payments as usual. If your policy contains "Loss of use" coverage, then your insurance will cover the cost of temporary housing within policy limits, allowing you to continue making your mortgage payments.
I believe this question deals with Mortgage Insurance, not homeowners insurance. After foreclosure the lender will file a claim with the mortgage insurer. The claim is paid and since the mortgage is no longer in force the policy is void and no further claims can be made. Since the policy is no longer in force there are no premiums to be paid. The insurance company will not come after you unless they discover that you obtained the mortgage (thus the insurance also) by fraudulent means. If that is the case they will come after you. Also, any losses that the lender incurred beyond what the insurance paid are still collectible. It will be reported to the credit agencies and they will continue to try to collect from you. Homeowners insurance is one of the peripheral issues that families facing foreclosure must deal with. While it is possible that the county can take the home through a different type of foreclosure for unpaid property taxes, and the mortgage company will be pursuing a lawsuit for the defaulted mortgage contract, there is little the homeowners insurance company will do upon nonpayment. However, this does not mean that property owners have nothing to worry about. There are two most likely scenarios when homeowners begin missing their mortgage payments, and what happens with the insurance will relate to how the premiums are paid. The issue may be handled differently depending on if the owners pay the insurance on their own or if it is paid monthly through the escrow on the mortgage. Most homeowners, though, escrow their property taxes and insurance through their monthly mortgage payment. Typically, when payments are missed on an insurance policy, the coverage will continue for a period of months. If something happens to the house, the owners will be covered by their policy, although the amount they have fallen behind will be deducted from total awarded to them for the accident. However, if numerous payments are missed for longer than just a few months, the policy will lapse and the owners will no longer have any coverage. What may happen at this point is the mortgage company will buy its own homeowners insurance for the house, and they will add the monthly premiums to the amount owed on the loan. If the homeowners want to get back on track with the mortgage, they will have to pay back this extra amount for the forced insurance. Lenders will also not shop around for the best rates, so the monthly cost for the policy may be quite a bit more expensive than the owners were used to. Of course, this should not be an issue at all if the homeowners pay the insurance through their monthly payment to the lender. The bank will keep paying the taxes and insurance to make sure the policy does not lapse, while adding the amount of these missed payments to the total needed to reinstate the loan. Any insurance payments the lender makes will be included in the payoff and foreclosure judgment.
To make a claim with your homeowners insurance policy, you will need to contact your agent for details on how to proceed from there. In searching the Wallside Windows webpage, I did not see any indication that they accept homeowners insurance as payment.
The three major categories of expenses that make up the cost of homeownership are mortgage payments (including interest and principal), property taxes, and homeowners insurance. These expenses are typically ongoing costs that homeowners need to budget for to maintain their homes.
There are many things that would make a mortgage insurance premium increase. Mortgage insurance is used when someone dies and pays money so that the mortgage will be paid. Smoking or participating in dangerous activities will increase the premiums.
No you don't have to, but you would be a fool not to carry enough insurance to cover your mortgage! However, most mortgage lenders do require it, and if so, they will not make the loan if you refuse to carry the mortgage insurance. In that case, the choice is yours.
You still owe the mortgage. And you must continue to maintain the homeowners insurance. If not, the lender who holds the mortgage has the right to place "forced coverage" on the property at great expense to you. When they add "forced coverage" they simply increase your mortgage payment to adjust for the difference. And of course you must make each payment in full in order to remain current on the loan and avoid damaged credit or foreclosure.
There are several options available online for websites providing information, quotes and the ability to apply online for mortgage life insurance. Make sure you understand the difference between mortgage protection insurance, and mortgage life insurance.
Mortgage insurance protects the LENDER ONLY. If your house were to burn down, they want to make sure they get their money. You are afforded NO coverage by mortgage insurance.
Your security deed or debt deed requires you have fire & hazard insurance. If you fail to show proof to your lender they can "Force" insurance on your property...and it is always MUCH higher than if you get it yourself. It is done to protect the lenders interest in the property in the event something like a fire destroys the home. If you are talking about mortgage insurance and not homeowners insurance then it is also required unless you make a 20% down payment on your purchase or have 20% equity on a refinance.
You have a home that is filled with furniture, clothes and other belongings. You worked many long years to build up equity in your home. Your home is the biggest investment you will make in your life. How do you protect that investment? If there is a fire and everything you own is lost, what can you do? In order to avoid winding up with nothing, you need to buy homeowners insurance as soon as you buy your home.If you are buying a new home, and you are getting a mortgage, then you have no choice but to buy homeowners insurance. The mortgage company or bank will make you buy homeowners insurance as part of the agreement to lend you money. They don’t want to lend money on a home that could possibly burn down. If your house burns and you have no insurance, then you and the bank would both be on the losing end. The bank can’t stay in business losing money.If you are paying cash for a home, you should still buy homeowners insurance. Once you know you are going to close on your home, get in touch with an insurance agent. If the company you deal with for car insurance also sells homeowners insurance, that is a good place to start. Have them give you an estimate for what the policy will cost. Get at lest two more estimates from other insurance companies.An insurance agent will ride by and look at your home from the outside, and most likely take a few photos of the house. You will have to provide them information on your personal goods and from there a quote will be worked out. Once he gets all the necessary information the agent will come up with the annual cost. There are variables that also come into play, such as how far your house is from the fire department or if there is a fire hydrant close to your home.Any type of insurance is a necessity, but homeowners insurance is the best insurance investment you can make. Buy homeowners insurance and protect your property and you investment. Don’t get caught uninsured
Homeowners insurance is available from a large number of insurance companies such as Swiftcover or Hastings. Whether someone wants it cheap or not it is best to read the terms and conditions carefully to make sure it covers what is required.