If my parents have house insurance, if they were to die would the insurance cover the mortgage?

  • by Lovingher!!!
  • Feb 22,2015
  • 10 answers

My parents have bad credit and want to get a new house. I'm thinking about consigning for them but was wondering. If my parents have house insurance, if they were to die would the insurance cover the mortgage?


LIKE OR DISLIKE:

  

Insurance Answers (10)

Bill 6 months ago

They would need a mortgage insurance policy in addition to the homeowners policy.

Help others find the most helpful reviews
Was this review helpful to you?  

Casey Y 6 months ago

Wow...
Life insurance is what you want, homeowners insurance has nothing to do with the death of the residents.

Help others find the most helpful reviews
Was this review helpful to you?  

mbrcatz 6 months ago

No, it doesn't. They'd need life insurance, to pay off the mortgage if they die.

Help others find the most helpful reviews
Was this review helpful to you?  

KL 6 months ago

Not unless they purchase a mortgage insurance policy.

Help others find the most helpful reviews
Was this review helpful to you?  

Cathi K 6 months ago

Mortgage insurance pays for that usually. Think twice about signing for them. There is a reason they have bad credit.

Help others find the most helpful reviews
Was this review helpful to you?  

jmm2112 6 months ago

"House insurance" covers damage to the house. It's not life insurance. And there are no "cosigners" for mortgage loans. You'd be a co-borrower. Think long and hard before doing that.

Help others find the most helpful reviews
Was this review helpful to you?  

TedEx 6 months ago

House insurance does not pay benefits for the death of the owner. Life insurance does.

Help others find the most helpful reviews
Was this review helpful to you?  

mayo_carl 6 months ago

only if they purchase that particular coverage.
it's called mortgage life insurance.
regular homeowners insurance covers damages to the home.
mortgage life insurance pays off the loan if you die, so that the joint owner (or inheritors) will own it free and clear.

Help others find the most helpful reviews
Was this review helpful to you?  

Jake 6 months ago

Home owner insurance covers lower cost, less complicated risks. One can get Mortgage Insurance but it could involve the same sort of physical as life insurance. Lenders require mortgage insurance in some conditions, so there is a chance hey have it already.
http://www.bankrate.com/finance/mortgage...

Help others find the most helpful reviews
Was this review helpful to you?  

StephenWeinstein 6 months ago

No.
House insurance does not cover the mortgage.
But if they get life insurance, and name you as the beneficiary, then you can use the money for whatever you want -- including the mortgage.

Help others find the most helpful reviews
Was this review helpful to you?  

Post a Answer

Your comment was successfully posted!

Or use your account on Blog

Error message here!

Hide Error message here!

Forgot your password?

Or register your new account on Blog

Error message here!

Error message here!

Hide Error message here!

Lost your password? Please enter your email address. You will receive a link to create a new password.

Error message here!

Back to log-in

Close