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I have a property on which we built a home. The property with home is worth $ 170,000. The remaining mortgage is $ 54,000. We now have to consider selling the home we love so much because the insurance companies keep dropping us. This time it was for having chickens ducks and a dog. This kicks the bank who holds the mortgage into getting us very expensive insurance which would almost double our mortgage payment. I would rather sell the house than go into poverty mode. Is there a way I can opt of of insurance by saying the property by itself is worth $ 54,000? Is there any other way to save our house?

5 Thoughts on can I opt out of home insurance?
  1. MSAD
    July 8, 2012 at 1:56 am

    As soon as you pay off the house, you can drop your homeowners coverage.

    However, it’s going to be a whole lot more expensive to rebuild that house and replace all the contents if you have a fire or other loss.

    You would be better served checking with several agents in the area. Perhaps talking to an independent agent. An independent agent writes for several companies and may be able to get you a better rate with a different company. Make sure you are completely honest with the agent about your home and it’s condition. If you keep getting dropped….there’s something else going on other than owning some ducks, chicknes and a dog.

  2. Zarnev
    July 8, 2012 at 2:12 am

    Unless the flocks of chicken and ducks were living in the house with you they will not cause the insurance company to cancel you.

    What was it the last few times that caused the companies to cancel you?

  3. StephenWeinstein
    July 8, 2012 at 2:36 am

    No. One condition of every home mortgage is that you must have insurance for as long as you have the mortgage.

    The only way to get out of the insurance requirement is to pay off the mortgage, in full, so that you no longer owe anything on it.

    You may want to try Foremost Insurance (not sure if that is the right name), which other answers on Yahoo indicate will insure homes that other companies won’t.

    By the way, if you have a dog, then it is not a good idea not to have insurance, even after the mortgage is paid. A lawsuit over a dog bite can easily run you over $ 100,000; more like $ 10,000,000 if someone dies.

  4. Ken G
    July 8, 2012 at 3:29 am

    If you have a mortgage you must have insurance to the value of the house not the amount of remaining mortgage. This is because of the coinsurance clause in the policy contract. The house is expected to be worth at least what the appraisal was at the time the mortgage was taken.

    If your mortgage is more than ten years old you may rewrite it at today’s lower interest rates and find the monthly payments are considerably lower.

  5. mbrcatz
    July 8, 2012 at 4:25 am

    If you have a mortgage, there is no “opt out” of homeowners insurance.

    What you really need to do, is stop buying “do it yourself” homeowners insurance, and go to a local, independent agent. Be up front about the reasons you’re being dropped (although if the dog is a prohibited breed, or has a history of biting anyone, you’re fighting an uphill battle), and let THEM shop around for a company that will take you.

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