by sueboyd » Fri Oct 12, 2012 01:22 pm
I recently lost my property due to unpaid taxes. It caught fire and was totally damaged! Will my up to date and current paid insurance cover my loss? I still reside there since the city hasn't given me a date to be moved out!
Posted: Sat Oct 13, 2012 12:35 am Post Subject:
Well what I can say for a fact is.... it will be a _long_ and detailed investigation!
At the end of the day any payment issued would include your mortgage company and the city.
Posted: Tue Oct 16, 2012 05:33 pm Post Subject: Fire Coverage
If you are not found guilty of the fire, then you'll get your compensation from the insurance provider.
Posted: Tue Oct 16, 2012 06:55 pm Post Subject:
you'll get your compensation from the insurance provider.
Sorry, but you cannot make such a statement. There is definitely a question of INSURABLE INTEREST at stake. At the moment the "home was lost", so was insurable interest in the dwelling. Dwelling coverage probably included personal property, but if there is no insurable interest, there is no insurance, and what claim is paid when a person has no insurance. With no insurable interest in the dwelling, the proper coverage would be a renter's policy.
Besides, the timing is visibly an issue, and could result in a claims denial due to suspected arson. Doesn't have to involve a criminal prosecution.
Posted: Wed Oct 17, 2012 01:17 am Post Subject:
You should carefully review the tax foreclosure paperwork to see if it addresses in any way a transfer of the risk of loss. Depending on the laws of your state and the foreclosure sale documents, the new owner of the property might be considered an equitable owner of the insurance policy. You might also discover that your insurance carrier won’t cover any damages or replacement to the building structure since you no longer maintain an ownership interest in that building. A fundamental principle of insurance agreements is the requirement that you maintain an interest in the thing you are trying to insure (i.e. its called an insurable interest). The contents coverage might still apply. I would definitely consult with an attorney as there might be some complications you should consider. For example, if you are given a statutory period to redeem your property, and you pay the outstanding taxes due, then the ownership interest might be transferred back to you. This could cause some complications on the insurance coverage. If you are in PA or NJ, feel free to give our firm a call.
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