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    donnaben23's Avatar
    donnaben23 Posts: 1, Reputation: 1
    New Member
     
    #1

    Jan 11, 2011, 05:33 AM
    Do I need home insurance
    I have a bank mortgage on Land and mobile home I lived in for 24yrs but the mobile home is unlivable now but I still want the land and I am still making my mortgage payments. My home insurance was cancelled due to the fact I am no longer living in the mobile home. Do I need insurance because I still have a mortgage on the property even if I don't live there?
    smoothy's Avatar
    smoothy Posts: 25,492, Reputation: 2853
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    #2

    Jan 11, 2011, 06:36 AM

    Under the terms of your Mortgage the answer will most likely be yes. THe insurance is less about protecting you, but to protect THEIR investment.
    And every secured loan, and a mortgage is secured, just like a car loan, requires insurance
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #3

    Jan 11, 2011, 07:03 AM

    Generally, mobile homes are sold under contract . So is the mortgage on BOTH the land and home or what? If on both, is there a requirement that it be insured?
    joypulv's Avatar
    joypulv Posts: 21,591, Reputation: 2941
    current pert
     
    #4

    Jan 11, 2011, 09:49 AM
    What? After 24 years, unless you refinanced, you can't possibly owe enough or be required to have it. Get rid of it.
    ma0641's Avatar
    ma0641 Posts: 15,675, Reputation: 1012
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    #5

    Jan 11, 2011, 10:37 AM
    According to most mortgage contracts, you will need to maintain insurance coverage for at least the amout of the outstanding balance. Even if you pay it off, you should maintain liability insurance for the vacant land.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #6

    Jan 11, 2011, 10:47 AM

    If the mortgage contract requires the insurance you have to carry it or risk them calling the loan. But you may reduce the amount of insurance you have to cover.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #7

    Jan 11, 2011, 12:04 PM

    This is the issue, is the mortgage on the land only or on the land and the trailer ? If only on the land, then no there would be no requirement.

    If the mortgage is on the land and trailer, then does the lender require it. If they require it and it is cancelled they will add a very large amount to the monthly payment to cover them getting insurance on it, Often 3 or 4 times the cost you can buy it for.

    So we can not answer this, since it depends on what the mortgage is on, and if on the trailer do they require it in the loan.

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