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So I saw one of the dumbest posts I've ever seen on Poal earlier and I thought I might clarify a few things for people who might not know otherwise.

I am a building contractor, I specialize in disaster recovery. When your house burns or has a major ass flood or gets hit by a freightliner I am the guy that comes and fixes it. So hear me when I say that I am kind of an authority on the subject.

>the bank originating the loan (read making money out of nothing) is the one usually offering the insurance

This is not true, banks do not offer home insurance, insurance companies do. Banks can only offer mortgage insurance to pay off your loan if something happens to you or something. So, there is NO conflict of interest. Do you really think if insurance was not a requirement that people would pay off their mortgage to the bank after their house burned down?

>you have to pay homeowners insurance (which usually covers nothing)

Homeowners insurance covers virtually anything that can happen to your house. However there are some exceptions and you should be familiar with your policy to be sure that you have the appropriate coverage. Some things cannot be insured such as poor craftsmanship. If your home was built with no vapor barrier and water seeps into your walls and they rot away then it is not covered by insurance. If the builder used a shitty half sized beam to span across your "open floor plan" and it breaks in half and collapses then it is not covered by insurance. (I have seen exceptions to this rule however and in this particular case your contractor may be able to get this one covered)

Home owners insurance is to cover a "sudden and unexpected" loss. For example, tree strikes, fires, broken toilet valve leads to flooding of entire house while you are on vacation. It is up to you to be sure that your policy has adequate coverage for you needs.

I can't tell you how often people buy the cheapest policy they can find without looking at the coverage or the deductible and then have a shit fit when their policy does not cover something. If your policy expressly excludes something and that something happens then don't be surprised when your insurance denies your claim.

Read your policy people, you might be surprised.

Also, one final note, even if your insurance denies your claim it will still be in your file that you made the claim. So it can affect your rate. If you file a claim for some damaged flooring in your laundry it may be covered by your policy but it might be more beneficial in the long run for you to make that $300 repair yourself, rather than have that claim on your record.

I'm sure I didn't hit all the details here, this is just a general primer. If you have any specific questions I can try to answer them below.

So I saw one of the dumbest posts I've ever seen on Poal earlier and I thought I might clarify a few things for people who might not know otherwise. I am a building contractor, I specialize in disaster recovery. When your house burns or has a major ass flood or gets hit by a freightliner I am the guy that comes and fixes it. So hear me when I say that I am kind of an authority on the subject. >>the bank originating the loan (read making money out of nothing) is the one usually offering the insurance This is not true, banks do not offer home insurance, insurance companies do. Banks can only offer mortgage insurance to pay off your loan if something happens to you or something. So, there is NO conflict of interest. Do you really think if insurance was not a requirement that people would pay off their mortgage to the bank after their house burned down? >>you have to pay homeowners insurance (which usually covers nothing) Homeowners insurance covers virtually anything that can happen to your house. However there are some exceptions and you should be familiar with your policy to be sure that you have the appropriate coverage. Some things cannot be insured such as poor craftsmanship. If your home was built with no vapor barrier and water seeps into your walls and they rot away then it is not covered by insurance. If the builder used a shitty half sized beam to span across your "open floor plan" and it breaks in half and collapses then it is not covered by insurance. (I have seen exceptions to this rule however and in this particular case your contractor may be able to get this one covered) Home owners insurance is to cover a "sudden and unexpected" loss. For example, tree strikes, fires, broken toilet valve leads to flooding of entire house while you are on vacation. It is up to you to be sure that your policy has adequate coverage for you needs. I can't tell you how often people buy the cheapest policy they can find without looking at the coverage or the deductible and then have a shit fit when their policy does not cover something. If your policy expressly excludes something and that something happens then don't be surprised when your insurance denies your claim. Read your policy people, you might be surprised. Also, one final note, even if your insurance denies your claim it will still be in your file that you made the claim. So it can affect your rate. If you file a claim for some damaged flooring in your laundry it may be covered by your policy but it might be more beneficial in the long run for you to make that $300 repair yourself, rather than have that claim on your record. I'm sure I didn't hit all the details here, this is just a general primer. If you have any specific questions I can try to answer them below.

(post is archived)

[–] [deleted] • 2 pts

Only a moron thinks homeowner's insurance isn't worthwhile.

FYI most policies cover firearms collections upto a certain amount. Check the fineprint of your policy.

[–] • 2 pts

Yes, they do, but it is typically a VERY small amount. Not even enough to cover a couple nice guns. Get a rider that specifically covers guns and jewels.

[–] • 1 pt

the bank originating the loan (read making money out of nothing) is the one usually offering the insurance

The only reason someone could say that is they've never purchased a house, unless they're in some country that allows for that type of thing.

[–] • 2 pts

That's a good point, I do not know the rules in other countries. I wouldn't think that would be allowed though.

[–] • 2 pts

I can't see that being allowed anywhere, but who knows. Banks tried to get that right some years ago, but it never went anywhere.

[–] • 1 pt

I also saw that post and it was completely retarded. The guy was bitching about paying $25k over 20 years or whatever as being wasted. Think how much the value of a house goes up in 25 years. If something major happens, I don't want to pay for that put of pocket when I could have a policy that costs pennies on the dollar to cover that. Better to rent the insurance than own the problem.

[–] • 1 pt

That post was retarded.

Homeowners insurance is what replace your roof when wind takes half of it off in the winter at peak lumber prices.

Banks require you keep it during the mortgage as condition of the the loan so that if something catastrophic happens everyone is covered. The loan getting paid is in your interest too. Not keeping after the mortgage can be quite stupid. It is very affordable.

[–] • 1 pt

My husband and I are closing on our first home in early Feb. The home is in a FEMA established flood zone, and contains renters.

What should we look out for in both home and flood insurance?

[–] • 1 pt

Earthquake and flood coverage are not included on standard HOI policies. Make sure you get a flood policy that includes Ground Water damage!

Not sure what you mean about it containing renters. Are you going to use it as a rental? If so you need a landlords protector package and it should be part of your lease agreement that the tenant has their own insurance policy.

[–] • 1 pt

We decided to shop around for insurance. We discovered that FEMA has basic requirements, hubby assures me that ground water is a core component of the coverage.

This is going to be an owner occupied rental building, and we decided to keep the current renters. They've already proven to us that they're paying. Their lease is insanely brief and does NOT require renters insurance. We will be including that in our lease, we will also require renters flood insurance.

Thank you!

[–] • 1 pt

tl;dr

[–] • 3 pts

Here's the condensed version: Don't be stupid, get homeowners insurance and read your policy.

[–] • 0 pt

Poor craftsmanship isn't covered, but...did that crappy trade's work damage another trades good work? If so, seek coverage for damage to the good trades work. The example of the lack of vapor barrier rotting the walls is one I'd put a claim in for, as the walls were good, just the concrete or waterproofer did a crap job. If the water vapor barrier was in, then the walls would still be in good condition.

[–] • 0 pt

Nope, the cause of the loss is poor craftsmanship and the claim will be denied. You will still have a claim on your record and no payment. I run into this all the time.

[–] • 0 pt

Poor craftsmanship for the trade is not covered, but damage to other property (other trades) is covered. For the general contractor, everything is their work and poor craftsmanship is not covered.

[–] • 0 pt

Hey,,, are you an insurance adjuster? Are you a contractor in this field? Cause I am here to tell you, you're wrong. Poor craftsmanship is not covered PERIOD. Loss from poor craftsmanship is NOT covered PERIOD. This is what I do every day.

Now, there are exceptions for every rule in the world. I have seen insurance adjusters cover losses that were not covered in the policy before, I don't know why, but I have seen it. That does not mean that is is right or it is gonna work out that way next time.