Who Pays the Mortgage When Your House Burns Down? LA Fires!

[@sharonhines8672]

I heard insurance companies cancelled fire insurance on alot of these properties a few months before the fires. Sad.

[@davidturner3552]

Horrible

[@bookworm1052]

* a lot not alot

[@VS-fo9py]

I’m in California, (not in the LA area) and I got notification that the insurance company I was with is no longer renewing mortgage and auto policies in California.

[@caitlinross8601]

It sometimes get difficult to get them to cover at the current value for total rebuild. We had to switch insurance because they would not increase the valuation to anything even close to reasonable. A foundation rebuild can be 150k alone!

[@davidturner3552]

In CA after the fire, there is paperwork you have to file (here it would be the county) to ask to have your property tax reassessed to be taxed without a home on it!

[@SweetTreatsBakery-CCP]

2018 we had a cat 5 hurricane hit our town. You also need to make sure your deck, boat dock, pool, etc. are covered. Our house was covered but not the rest so we had to pay for new fence.

[@pamt3915]

Not only should you contact your mortgage lender, but you should also contact your creditors for credit cards, car loans, etc. keep a list with the account numbers, addresses & phone numbers in your go bag.

[@rhondalockrey9592]

These disasters happening in so many places do bring up some good valid questions. I had heard too that an insurance company had cancelled fire polices not long ago in CA. I mean if you pay insurance on a home then its cancelled & now you don't offer me the service I paid for 20 years. Isn't that like stealing my money for 20 years sounds like fraud of some kind. How do they get away with cancelling it completely. I hope something can be worked out. Where is all this money going to come from to help everyone Maui is not fixed Florida is not fixed North Carolina if not fixed now CA. Plus the money for the wars spent what money is left so tragic & sad.

[@lisaruiz6799]

This is just awful all the way around. 😢Absolutely awful. 😢No one can control fires, tornadoes, hurricanes, etc. Homeowners are screwed. 😢 Look at the folks in Eastern TN/WNC. 😢

[@kimsrurallife8775]

Hello everyone from my Wisconsin Farm!

[@brucebiendarra9843]

Hello from SE Wisconsin!

[@diannthomas7849]

Im from SE Wisconsin too. Stay warm!

[@hawaiiandawn374]

Major issue is lots of insurance co dropped policys in calif.

[@HoneyHollowHomestead]

Yeah, because of the poor management of the CA government.

[@pamrymanowicz293]

Yes you are still responsible for the mortgage & taxes etc. However, your insurance pays for a place for you to stay in a hotel or a short term apartment. Unfortunately when we had our house fire the insurance was "supposed" to pay but didn’t & the motel hit my debit card & ended up overdrafting my account. Then refused to pay the overdraft fee. Thus i now have $ in bank as a cushion. But eventually the insurance paid the motel minus the overdraft i got stuck with. I hope no one ever has to go through this. Then ServePro stole a 100 yr old antique ashtray owned by Irvin Austin. Founder of Austin TX, my hubby's relative. An expensive like new ski doo snowmobile suit among other things. The person reconstructing the place used shoddy materials so the so called repairs were terrible.

[@davidturner3552]

I heard rent is skyrocketing. So if this happens to you, find a new place to live ASAP. Decide where you want to live and what amenities you are looking for. (Near kids schools? Near a park if you choose an apartment? What places do frequent? Move closer to work? On a bus line? Keep in mind you will be paying property taxes.) So many people moved here durring the pandemic that a company helping people find apartments closed as there were no listings! Wait lists!

[@anndantz1200]

Same with a flood! You’re right it is emotional… But you’re also right it is a responsibility, a financial responsibility that is expected to be paid

[@Me-je2jv]

Good information. 😊

[@einzgeisha]

Thank you for the information especially how all those earthly disasters are happening in both the west and east states of US

[@Tibordog]

I love your decorations!❤❤

[@LivingOnADime]

Thank you! 😊

[@Boone22]

Questions, if its burned to the ground, what about current hazardous materials on the property, until the parcel been restored to clean state? Do you know if they get reduced taxes?

[@justlikeheaven7149]

Hey everyone, Correct me if i’m wrong because I don’t know much about this but when you get a mortgage I believe there is an additional insurance tacked on to the mortgage to protect the bank, if that is the case they’re already covered. Please comment if you have knowledge about this.

[@coffeecupconversations]

Do they not offer catastrophic house insurance so if something happens, you are not responsible? I haven't had a mortgage in a while.

[@conniegunn]

Hello from Deadwood 👋 ❤

[@annettependergraft120]

Did California cancel policies prior to the fires? That's what I've read, but have not been able to confirm at this time.

[@brucebiendarra9843]

I heard that too but don’t know all of the details.

[@diannthomas7849]

From what I read, many insurance companies did send cancellations to homeowners in the last 6 months. Many insurance companies have been pulling out of California because they are losing money. The risk has gone up significantly, but the state would not allow rate increases. For example, State Farm had an underwriting loss last year of around $6B. Many homeowner purchased insurance through the California Fair plan but I was just reading that plan may end up under water due to the fires. That state better start rethinking the way they operate if they dont want to continue losing residents.

[@elizabethmcdermand]

Agreed.

[@hawaiiandawn374]

What about filing bankruptcy?

[@kariwilliams4289]

Good question

[@franaustin2537]

Very good information

[@BellaCinco]

When are the lives starting?

[@ButterflyKisses.]

I love your Valentine decorations. Noticed right.

[@LivingOnADime]

Thank you!

[@rxanmurray]

Hello Mike and Tawra .. it’s been a while ❤ haven’t seen a live in a while 😢

[@tamibrantley7986]

Yes the insurance companies canceled policies all over California last year. Yes a person is still responsible for their debt. But let’s get real, you can’t get blood from a turnip and a lot of these people lost their jobs/businesses in the fire too. Our country did a whole lot to help Louisiana after Katrina, lots of hurricane aid on the east coast over the years. Regardless of the way people feel about California politics, these people are Americans and honestly California money keeps red states supported meaning only that we cannot and should not turn our backs on fellow Americans.

[@diannthomas7849]

Not sure how California is keeping red states supported, but I do agree the federal government is going to end up helping the people in California.

[@LivingOnADime]

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