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i have family living there and they pay all the living expences but i pay the mortgage and insurance and taxes and spend 2 weekends a month there.

5 Thoughts on if you are paying a mortgage and have full insurance coverage on the home does it matter if you live somewhere?
  1. Reply
    August 29, 2011 at 9:53 am

    Actually yes since both the mortgage and homeowners insurance rates are based on the house being your primary residence. As a rental unit then you should be charged commercial rates.
    Technically you have voided both contracts. Should something go wrong the Lender can call your loan immediately and the insurance company could refuse payment of a claim. Read your contracts and policy

  2. Reply
    August 29, 2011 at 10:46 am

    Depends on how the insurance is written.

    A HOMEOWNERS policy is for owner occupied homes. You don’t live there, you only visit two weekends a month – so if you insured the house on a homeowners policy, you’ve got a serious coverage issue – like maybe it won’t be covered AT ALL, if something should happen.

    So yes. It matters, if you live there or not – and you don’t. It ALSO matters, if someone else is living there (rent free, or rent paying, doesn’t matter). And they are.

    Your home is NOT owner occupied. Visiting twice a month doesn’t make it owner occupied. You’ve got coverage issues.

  3. Reply
    August 29, 2011 at 11:22 am

    It could matter very much. Your mortgage could contain a restriction that the house is to be used as your primary residence. And your homeowner’s insurance DEFINITELY needs to be changed because the house is now tenant-occupied. Your two weekends a month mean nothing.

  4. Reply
    August 29, 2011 at 11:23 am

    It does not matter. unless the family members are paying rent.

    I cant see any reason why it would matter
    the house is not vacant always occupied, in the policy there is nothing stating that you have to be living there all the time. the only difference the policy has if you have somebody paying rent at the house this makes some changes. (i.e. any contents in the rented part of the house would not be covered, any seperate structure rented out is not covered inlcuding the contents)

  5. Reply
    August 29, 2011 at 11:48 am

    yes. most insurance contracts require the named insured to live in the residence. Better to let your agent know you don’t live there, and he can write a different policy for you for the house. All the lender cares about is if they are protected, so they won’t give you a hard time.

    Call your agent, let them know you don’t live in the home, they can write a rental property policy for you. Tell your family members to get a rental policy to cover their stuff in the event of loss.

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