Quote:
Originally Posted by onewhippedpuppy
Aren’t most homeowners insurance policies amortized into the mortgage payment?
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Not necessarily. Back when I had a mortgage I bought and paid for my own insurance, but had to prove to the bank that I had insurance periodically, and as I recall the bank required that my contract with the insurance company had a clause that they would contact the bank immediately if I was delinquent on the premium payment.
I don't know why I went this route, when you can just have the bank pay the insurance premium directly.
I am in a situation where we have way too much house for the two of us. We're living in 6000 square feet when we could happily live in 2000. We're paying replacement value on a house that we will never replace.
I've considered not insuring it for full value, but if it should get blown away in a tornado (more likely than a fire around here) I'd only get part of its value back. I don't know if the loss is worth the risk.