Had a house fire - should Insurance cover mortgage?
My family had a house fire (needs to be re-built completely) and I am wondering if the insurance company should cover the mortgage if we are not living in the house?
Nope, that's not a standard coverage. You still have to pay the mortgage. The STANDARD HO3, though, would pay for a trailer in the driveway to live in while the house is being rebuilt, or an inexpensive motel to live in - under the 'loss of use' section.
More than likely however your homeowners policy has a provision in it for "Loss of Use" (or some similarly named phrase) which would pay you for the reasonable costs of living should the home be rendered uninhabitable due to a coverage loss. Some companies have a set dollar am mount some have a percentage of the main dwelling, and some have a simple time limitation.
The way it would work is they'd probably pay to have you housed somewhere during rebuilding / repair plus some extra for the added expense you'd naturally incur from not being able to cook at home etc etc.
The best person to speak with on what is getting paid out will be your claims handler and you can discuss other coverage options with your agent.
But sadly, the mortgage itself would be left entirely to you.
There are some companies that will stick endorsements into policies so if you are out of the house they will make part of your mortgage payment. You will have to check with your company to see if they have this endorsement. (Not many offer it)
If they do not, the mortgage is your responsibility even though you are not living in it.
Had a house fire - should Insurance cover mortgage?
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