My home was damaged during the storm Matthew insurance company gave me a $20.000 check I owe 21,000 0n my home can i use it to pay off my home
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UPDATED: Nov 3, 2016
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Insurance Question from Dataw Island, SC
Asked on 11/03/2016
My home was damaged during the storm Matthew insurance company gave me a $20.000 check I owe 21,000 0n my home can i use it to pay off my home insurance check in my name and lenders name check is less $1000.00 from what i owe do i have to use it for repairs or can i pay it off and fix it my self
Answer given on November 27, 2016
If you filed a claim for damages to your home caused by a storm, it is intended that you use the money to fix your home. If there are future damages to your home from other storms, the insurance company may refuse to pay for the damages since you did not repair your home.If you feel you can make proper repairs to your home on your own after paying off your mortgage, and the mortgage company will accept the payment, you can pay off the loan.If you do this and the home is damaged in another storm before you can fix the home, the insurance company will decline any payment to you for the new damages and may cancel your insurance for not fixing the home. Also, you will lose the tax advantage of having a loan on your home, such as the interest that you can deduct from your taxes. This will increase your income tax liability going forward thus reducing your income.
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