Okay, this may sound stupid.

I bought my house in 2006, first home. I hate it (now) but that is
my wanderlust speaking. The purchase of this house was an investment
and now I'm ready to move on. I know that NOW would be a terrible time
to sell my house for two reasons, Hurricane Season and the Housing
Market.

In 3-5 Years, I should see a significant return on my property,
however, with the current media hype about how terrible hurricane
seasons are supposed to be, I've been paying particular attention to
my insurance policy.

I renewed my policy on the 1 year anniversary of my purchase and
noticed that if a hurricane came and blew my house off my property (or
destroyed it completely), that I'd be able to pay off my mortgages and
own the property outright if I didn't rebuild and I'd own a lot and
1/2 free and clear.

Is this view of my insurance reasonable? Should a hurricane destroy
my house can I use the insurance money to just pay off the mortgage
outright and not rebuild? I'd think there are people who were
affected by Katrina who might not have wanted to return to that area
because of similar situation.

Thanks

"PCGumshoe" wrote in message
ups.com...
Okay, this may sound stupid.

Yes, it does.


Is this view of my insurance reasonable? Should a hurricane destroy
my house can I use the insurance money to just pay off the mortgage
outright and not rebuild? I'd think there are people who were
affected by Katrina who might not have wanted to return to that area
because of similar situation.

That is a question best answered by your insurance agent and lawyer. None
of us here have read your policy and anything we say is speculation.
Insurance laws vary from state to state.

On Sat, 28 Jul 2007 01:16:47 -0000, PCGumshoe
wrote:


I renewed my policy on the 1 year anniversary of my purchase and
noticed that if a hurricane came and blew my house off my property (or
destroyed it completely), that I'd be able to pay off my mortgages and
own the property outright if I didn't rebuild and I'd own a lot and
1/2 free and clear.

But the question is, How can you start a hurricane?

On Jul 28, 2:09 am, mm wrote:
On Sat, 28 Jul 2007 01:16:47 -0000, PCGumshoe
wrote:



I renewed my policy on the 1 year anniversary of my purchase and
noticed that if a hurricane came and blew my house off my property (or
destroyed it completely), that I'd be able to pay off my mortgages and
own the property outright if I didn't rebuild and I'd own a lot and
1/2 free and clear.

But the question is, How can you start a hurricane?

That's funny... I'm not intending on INTENTIONAL, but I'm just
saying. I'm an EARTH QUAKE kid... grew up on the other coast, if we
get hit by the BIG ONE, I doubt I'd want to stick around and enjoy
everyone's misery, if I can pay off my mortgage, I can move back years
later when things settle down and I can rebuild then when it is less
competitive.

It was a silly question, I guess, but I suspect that there are lots of
Katrina victims that like their new living locations and fear another
hurricane and might opt for this.

"I renewed my policy on the 1 year anniversary of my purchase and
noticed that if a hurricane came and blew my house off my property
(or
destroyed it completely), that I'd be able to pay off my mortgages
and
own the property outright if I didn't rebuild and I'd own a lot and
1/2 free and clear.

Is this view of my insurance reasonable? "


No. The insurance should be sufficient to cover the cost of
replacement of the structure. Suppose you have a house that would
cost $500K to rebuild and you have a $200K mortgage remaining. Would
you be happy with a $200K check if it's destroyed?


Should a hurricane destroy
my house can I use the insurance money to just pay off the mortgage
outright and not rebuild?

You should check your policy and/or insurance agent. In every case
I'm aware of, the answer is yes. Whether it's a house, car, boat, or
watch, the insurance company isn't going to make you buy a
replacement.


I'd think there are people who were
affected by Katrina who might not have wanted to return to that area
because of similar situation"

PCGumshoe wrote:
Okay, this may sound stupid.

I bought my house in 2006, first home. I hate it (now) but that is
my wanderlust speaking. The purchase of this house was an investment
and now I'm ready to move on. I know that NOW would be a terrible time
to sell my house for two reasons, Hurricane Season and the Housing
Market.

Old Yiddish joke:

"So, Reuven, how are things?"
"Wonderful. Last year we had a fire in Brooklyn, but insurance came through.
Tell me, Moishe, how are things with you?"
"Wonderful also. Last year in Florida we had a hurricane but our insurance
paid off and we're back on our feet."
[pause]
"So, tell me Reuven, how do you have a hurricane?"

In article ,
mm wrote:

On Sat, 28 Jul 2007 01:16:47 -0000, PCGumshoe
wrote:


I renewed my policy on the 1 year anniversary of my purchase and
noticed that if a hurricane came and blew my house off my property (or
destroyed it completely), that I'd be able to pay off my mortgages and
own the property outright if I didn't rebuild and I'd own a lot and
1/2 free and clear.

But the question is, How can you start a hurricane?

Oh a very nice twist on a classic (grin).

In article
. com,
wrote:

No. The insurance should be sufficient to cover the cost of
replacement of the structure. Suppose you have a house that would
cost $500K to rebuild and you have a $200K mortgage remaining. Would
you be happy with a $200K check if it's destroyed?

He would be lucky if the insurance paid $200K on $500K insured
damage

Oy vey!

HA HA HA... that was funny.

Actually, that's why I asked, when I added up all the structures
(Dwelling, Other Structures, Garage Apartment) I actually come out
$4000 ahead. My personal property isn't even included. My insurance
is "replacement" with ordinance allowance of 25%. So, if I have to
rebuild, they will pay beyond the value up to 25% if the house needs
to be brought to a newer code.

My insurance is the State Fund insurance here. Can't get regular
because of Hurricanes.

On Sat, 28 Jul 2007 13:00:47 -0000, wrote:

"I renewed my policy on the 1 year anniversary of my purchase and
noticed that if a hurricane came and blew my house off my property
(or
destroyed it completely), that I'd be able to pay off my mortgages
and
own the property outright if I didn't rebuild and I'd own a lot and
1/2 free and clear.

Is this view of my insurance reasonable? "


No. The insurance should be sufficient to cover the cost of

Should be and is are two different things. Generally, and I presume
this is true for the structures as well, insurance only pays what the
property is worth, what you could sell it for. If your house was
rundown and needed a new roof, had termite damage in the important
timbers, etc. buildders don't know how to build an old or run-down
house, so the insured has to pay the difference, or build a smaller
house.

There have been a lot of policies in the last 30 years that pay
replacement value for contents and probably for the structure. But
they say that in the policy. If the policy is written to pay only
what the property is worth, and you have 500,000 insurance for a house
that costs 500,000 to rebuild, but the house is run down, they will
pay only the 300,000, say. I don't know if they have to return the
excess premiums you've been paying or not, but that is small change.

I don't know how many companies sell only replacement-value, how many
sell both, and how many only sell current value. I don't know how
many salesmen lie.

In a way there is a special risk in writing replacement-value
insurance. A large part of the increased value is inflation, which
should affect the investments the insurance ocmpany makes with your
premiums, but it could be that construction and material costs
increase faster than inflation. Especially I would think on the gulf,
where so many need reconstruction at the same time. Of course the
premium charged is designed to consider all these things, including
the parts that are not known.

replacement of the structure. Suppose you have a house that would
cost $500K to rebuild and you have a $200K mortgage remaining. Would
you be happy with a $200K check if it's destroyed?

No. Read your policy, and deal with reliable companies. (I've heard
in the hurricane some that were reliable seemed not to be so, but
maybe that is what people say who didn't read their policies, even
when the saleman explained things correctly.)

Should a hurricane destroy
my house can I use the insurance money to just pay off the mortgage
outright and not rebuild?

You should check your policy and/or insurance agent. In every case
I'm aware of, the answer is yes. Whether it's a house, car, boat, or
watch, the insurance company isn't going to make you buy a
replacement.

That's what I've seen too. Some defendants on the TV court shows
complain when the plaintiff wants to use the money for something else,
but they wouldn't think that if they were the plaintiffs.


I'd think there are people who were
affected by Katrina who might not have wanted to return to that area
because of similar situation"

I'm sure.

On Sat, 28 Jul 2007 13:46:41 GMT, Kurt Ullman
wrote:

In article ,
mm wrote:

On Sat, 28 Jul 2007 01:16:47 -0000, PCGumshoe
wrote:


I renewed my policy on the 1 year anniversary of my purchase and
noticed that if a hurricane came and blew my house off my property (or
destroyed it completely), that I'd be able to pay off my mortgages and
own the property outright if I didn't rebuild and I'd own a lot and
1/2 free and clear.

But the question is, How can you start a hurricane?

Oh a very nice twist on a classic (grin).

Yes, exactly. I know gumshoe is not intending to start a fire or
hurricane, but I wss deternined to put that punchline in there
somewhere.


That is of course why sone fires get started, so the owner can get his
money out of the business when for some reason he can't sell it for
what he thinks it should be worth. Which implies that one doesn't
have to rebuild, which was also a question in the OP's post.