Auto Insurance AUTO

Auto insurance protects you against financial loss if you have an accident.

Read More
Homeowners Insurance HOME

A standard policy insures the home itself and the things you keep in it.

Read More
Business Insurance BUSINESS

Discover the perfect insurance options to meet your specific and unique needs.

Read More
Contractors Insurance CONTRACTOR

Browse a variety of insurance options in order to find the right one for you.

Read More
Medicare Insurance MEDICARE

Learn about different medicare coverage to fit your specific needs.

Read More
Travel Insurance TRAVEL

Finding insurance doesn't have to be difficult. We do the work for you.

Read More

Do I Have to Rebuild for My Insurance to Pay?

Most of the time,
homeowner's insurance pays to repair or rebuild a damaged home so its owners can continue to live there as they did before the loss occurred. Sometimes, though, you may prefer to take the insurance money and move somewhere else instead of rebuilding. Several factors determine whether this is possible and how much money you receive.


*    If you have a mortgage on your home, you are not the only owner. Your homeowner's insurance company must represent all the owners, including the lender, on settlement checks. You will not be able to cash any check with the lender's name on it unless the lender endorses it, which is unlikely. The lender has invested money in your home and wants to ensure it is repaired so its investment is secure.

Total Loss

*    If your home is destroyed and the settlement amount you receive from your insurer exceeds the outstanding balance on the mortgage, you may be able to sign the check over to your lender to pay the balance due. If there is any settlement money left after satisfying the mortgage, the lender will issue you another check for your portion. Some lenders may not do this; they may insist on rebuilding the home. You must do what the lender demands.

No Mortgage

*    If you own your home without a mortgage, the settlement money is entirely yours. You may want to repair partial losses to your home to keep it safe and functional and retain its value, but if you prefer to take the money after a total loss instead of rebuilding, you can. Your local government may insist (Ohio Revised Code)  you clean the debris from your old home off your parcel, but otherwise you can take the money and run, so to speak.

Actual Cash Value

*    If you choose not to rebuild your home, you may receive a smaller settlement amount than if you were to rebuild. Homeowner's insurance is settled as actual cash value, meaning settlements are diminished according to depreciation, unless you have a replacement cost endorsement. However, many insurers don't pay replacement cost unless you actually replace the damaged property. Therefore, if you choose not to rebuild your home, you may only get an actual cash value settlement.

By Stephen Hicks, eHow contributor

In simple terms - Your insurance company is trying to protect you and other insureds by safeguarding losses.  Intentional fires or claims could drive up premiums.

For More information on Protecting your home contact Bill Quickel's - Insurance Plus Agencies Inc. 114 Court St. Pomeroy, Ohio 45769


Posted 3:27 PM

Share |


Don C said...
Why would the lender have anything to do about whether I would rebuild a total loss home? They have their money, why dont they just go away. I may want to build a smaller home because my children are gone, etc. Or build a small house for my mother in law, etc. Why is the lender involved?
joseph blair said...
I want to walk away from my burned house, I have mortgage of 110,000 .what happens to be
MONDAY, JUNE 06 2016 8:14 PM
Xander said...
Great posts! Thanks for such a very nice blog information, Thank you for telling more about this story. Its really giving me lots of info for my working website and tips, big help for me.
You may also can visit my website at
TUESDAY, MAY 09 2017 2:24 AM
Ellen P said...
After a total loss and insurance pays lender and I choose not to rebuild...who then owns the land/lot?
WEDNESDAY, MAY 10 2017 7:35 PM
Altona Rogers said...
I have federal flood insurance in Texas. I flooded with 2 water inside. I own the home, no mortgage of any kind. Do I have to rebuild on this property or can I tear down and jut take the money to use on another place?
THURSDAY, AUGUST 31 2017 11:00 AM
bob smith said...

TUESDAY, OCTOBER 17 2017 1:49 PM
Michelle Strimple said...
We have flood insurance on our home and we have a mortgage. We want to do the repairs ourselves, and have done some already. Now, the mortgage company says we have to have outside contractors do the repairs. Can they force us to use outside contractors? We are more than capable!
Ms. K said...
A friend has had a fire in her home. It was a partial loss. She would like to move, and planned on it before the fire. Is their a way for her to receive a settlement in order to help with this! Also understanding that she would need to pay the mortgage first? And help or advise is appreciated.
SUNDAY, MAY 13 2018 8:36 PM
Sami haddad said...
Had fire at my house and damage is extensive. Claim not settled yet but seems like total gut. My Homeowners ins is due for renewal. What type coverage if any should I get? And if I decide to buy house instead of rebuilding will I recover my depreciation? My policy is replacement cost
SUNDAY, JUNE 24 2018 6:50 AM
Brandi said...
we lost an outbuilding. The insurance is putting mine and the mortgage companys name on the check. I do not want to rebuild the outbuilding. The location would pose to have the same damage in the future. Can I replace it with a small shed or not rebuild it at all? Do I HAVE to replace it? I owe less than the property is worth, even without the shed/outbuilding.
THURSDAY, JULY 05 2018 3:28 PM

Post a Comment
Required (Not Displayed)

All comments are moderated and stripped of HTML.
Submission Validation
Change the CAPTCHA codeSpeak the CAPTCHA code
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive

View Mobile Version
Share Kindness
© Copyright. All rights reserved.
Powered by Insurance Website Builder