Burnt Down Houses - Insurance Claims?
how does the insurance work on a burnt down house. there is one in my area that im looking at but i have no clue if its tied up in an insurance claim. what goes on when a house that insured burns down. anyone had this happen to one of there houses? thanks
Do you mean in reference to the claims process or the potential sales from salvage process?
im interested in learning what exactly happens, who gets what; Does the bank get the balance of the loan back from the insurer? Does the owner get anything back? If the owners arent paying the mortgage because there not living there (no house) does the bank foreclose or is it tied up in a claim and they cant legally foreclose? If the owners are looking to get money out of the insurers can they still sell the house? does the bank try to help them rebuild on the same spot? im just curious as to the process and how it all works. thank you.
Zin... I recently walked a friend thru the process after her house burned.
First, she filed a claim. She had to get a quote from a contractor to rebuild, which happened to be above the insured value of the house. She had to detail the value of the contents, room by room, and list her living expenses for temporary housing, etc., etc.
She gave me a power of attorney to negotiate with her insurance company. Their first offer was $132k to settle everything. We said no and played hard-ball, stretching out the negotiations for several months.
The insurance company finally settled for $257k. They wrote one check for the amount of the house loss, $175k or so, payable jointly to the homeowner, her contractor and her mortgage company. She and the contractor endorsed the check and send it to the mortgage company, and they sent her the balance above payoff back to her.
The other two checks, one for contents and one for incidentals and temporary living expenses, were sent directly to her. Thus, she had total control of the cash to rebuild or do with as she wished.
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You have good explanations thus far. I would sit down with your Agent and let him/her explain the process from the perspective of the company that insures the property(ies) in question.
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If this is a rental...........tell me, are you going to get any additional money after spending $1000.00 (easily) in this appliance renovation?
Did anyone else notice that this rental has appliances that are over 30 - 40 years old.........and is still working.
I have spent over $8000.00 on top of the line GE appliances in my personal home and have had problems with them as soon as the warranty expired.
Currently I put GE appliances one notch above the IRS.
NC_Yank
bump