82

The simple answer is that their underwriting models show that customers with higher credit scores are less expensive to insure. The general argument is that credit score is a reasonable proxy for responsibility, not wealth. Someone that religiously pays their bills on time is likely to be quick to address small maintenance issues rather than letting them ...


52

Homeowners insurance only needs to cover the cost of rebuilding a home, it does not need to cover the cost of land. In some areas, the cost of the land can be more than the cost of rebuilding a home.


42

The state insurance regulation office (Florida) has told her that this is totally within their right to do so. Respectfully, mom contacted her state regulatory agency, and received an answer, but you're here to seek an alternate view? The downed tree is an attractive nuisance. If I were 8 again, I'd love to come play on it, fall off, break my ankle and ...


42

The seller could be liable, if they knew about the issue and didn't disclose it, but it can be hard to prove they knew. The inspector could be liable, but many inspection agreements are limited to what's visible, and include language that attempts to limit liability to the cost of the inspection. So, if prior occupants possessions were concealing the damage ...


40

When reading the responses, it seems like everyone is reactionary but there are some good points made. I will say that I am answering this question as a home inspector and previous to that worked in the insurance industry as a Loss Control consultant. Also I am in California but inspections and insurance carriers are similar. First the major damage referred ...


20

With insurance in general, you really should use it only to mitigate risks that would bankrupt you. Because your insurance premium will always be the cost of the actual risk plus the insurer's operating expenses and profits. Unless you believe you know the risk better than the insurer - but given that they can exist as a company only because they know how to ...


19

I would talk to a local attorney and see what your options are. Inspectors are human and can have differing opinions on severity, but it may also be something that the first inspector missed. Not all areas allow you to sue an inspector, but if it's something that you (or your attorney) can argue should have been caught you might have some recourse against ...


14

This was discussed in an article in Consumer Reports in June 2017. The explanation given was that people with higher credit scores have the means and inclination to pay for issues out-of-pocket, rather than by making a claim. But Alldredge says insurance companies wouldn’t use the scores if they weren’t useful in assessing risk. “Maybe the person ...


13

What you need will depend on a number of factors that aren't clear from the question. This coverage is simply called "Vacant home insurance", but not all companies are willing to offer this coverage. Unfortunately, in New York, insurers can also legally drop your standard homeowners' coverage if they become aware that your property has become vacant for 30 ...


12

It depends a bit on the actual policy she has, but yes, they can cancel the policy. Tree B (the debris) now poses a threat to the property and its inhabitants. If you do not remove the debris and another storm comes through or someone gets hurt by it while on the property, the insurance company won't want to pay out to cover it.


10

A home warranty (better called a home service contract) provides exactly this service, usually for all built-in appliances in the home.


10

Welcome to Money.SE. Please take a look at the recent question, Why buy insurance?. Much of the discussion of risk applies to this question as well. The numbers look like your mortgage is closer to 10% of gross income. Life insurance in your case is a personal decision. In my opinion, life insurance should be to help loved ones left behind not experience ...


9

Every security pamphlet passed out by police, locksmiths, et al will suggest things like installing outdoor lights, trimming hedges fairly low, and so on -- all with the underlying thought that it makes intruders easier to see, permitting neighbors and passers-by to notice suspicious activity and report it to the police. This also has the direct effect of ...


9

My family background is in real estate and law. I have a good amount of experience in dealing with homeowners insurance / insurance companies. This has little to do with policy coverage and more to do with how insurance companies work. The truth of the matter is that the insurance company is looking for a reason to cancel the policy, unfortunately. To them, ...


9

Almost all insurance policies have clauses insisting that benefits be coordinated with other insurers, specifically so you do not get paid twice for the same loss. That reduces the temptation to commit insurance fraud, among other reasons -- it prevents situations where the insurance adds up to more than replacement value.


9

The reason the mortgage company's name is on the check is because the insurance company knows you have a mortgage, and the mortgage company wants to protect their asset. They want to make sure that critical repairs are made. I have found that the lender will endorse the check if you can prove the work has been adequately done, even if the amount of the ...


8

Your mother-in-law might consider a home-repair policy that covers all of the major systems (HVAC, Water heater, plumbing, garage doors, perhaps even appliances). She would buy this policy to reduce the risk of a large expense not handled by monthly cash-flow. She might do this because she has a fixed income, and does not have an emergency fund, in the ...


8

You don't have to make the repairs, if they're just cosmetic. The insurance company doesn't care if your house looks good or not. On the other hand, if the repairs are structurally necessary to prevent water damage to the house, not making them may result in the company raising your rate or not renewing the policy due to the increased risk. You can try ...


8

Ask the insurance carrier to explain to you, in writing, why they regard the tree as dangerous. Then take that back to the insurance regulation board and complain that they are refusing to cover damage caused by an accident that creates a risk. The insurance regulation board is less about forcing insurers to provide insurance, and more about forcing ...


8

You need to consider the point of insurance: it's to protect you (or if the property is financed, the lender) against catastrophic losses. So in the case of homeowner's insurance, you have to consider what would be a catastrophic loss to you. If you could easily afford to rebuild after a fire, then you don't actually need insurance. If you aren't that ...


7

The only real answer can be "ask the HOA contact." The chance, in my opinion, is not likely. Even in my own home, there's two policies, one for the house and contents, the other for the car. The association has an obligation to keep costs as low as possible. Insuring your car under that policy makes little sense.


6

I will give a slightly different twist to JoeTaxpayer's answer but what I say might be applicable only in the US whereas this question is tagged european union. All the house mortgages that my wife and I had (as a two-earner couple) had a clause stating that the mortgage became immediately due if either of us passed away. In this event, the surviving spouse ...


6

Answer all of their questions honestly and as accurately as you can, but don't stress too much about it. If you don't know the answer to something, ask the insurance agent what it means; that's what they're there for. (If you're doing this online, email the support, or the 'live chat' feature many of them have. Or, don't do it online, if you feel better ...


5

Yes, this is possible. (I do it myself, for similar reasons as you said in the question.) Just make sure your primary insurance has the correct limits required by your umbrella policy. Also, if you ever add/remove autos, you have to inform both insurance companies.


5

Insurance coverage varies by state, so only someone familiar with Florida give a specific answer, like the state insurance board. But in general, the insurance is there to compensate for unforeseen and significant damage to the home and other insured property. A fallen tree has not damaged an insured structure so the owner has not suffered a loss to ...


5

Insurance is used to help cover the reasonable replacement value of the insured item. In short, don't expect to profit from having 2+ insurance accounts covering one specific item. During the paperwork, the claimant will be asked if they have additional coverage for the item. If so, and it's intentionally not reported, in hopes to profit off an additional ...


5

you'd certainly want to check your policy. For something with the impact as great as a roof, there may be a clause in the policy requiring the repair in order to maintain coverage. Look for wording that your coverage is limited or restricted until repairs are completed. Depending on the coverage for your possessions, any additional claims, although ...


4

You have several issues at work. If in the next few years you have a leak in the roof that causes another insurance claim, they may decide not to cover it because they already paid you to replace the roof, and it is your fault that it wasn't. That might also mean they don't pay you for the stuff that is damaged because of the "new" leak. If you minimize ...


4

We recently had a sump pump fail during a rainy weekend. Never had more than an inch or so of water on the floor. Total cost to remove the water, dry out the basement, and repair the damage to the paneling and wallboard: more than $7,000 plus the new sump pump. We are not in a flood zone. In a flood zone the cost of the loss could be total. A flood is ...


4

Probably. My local utility (BGE) has a subsidiary that will add a fee to your monthly power bill and cover things like routine inspections, etc.


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