I have a question about insurance protection on a paid off home.

[brig2221]

I am trying to gear myself up to pay off our mortgage completely within the next 12-24 months.

One of the questions that I have is, once I have paid off my mortgage completely, is there any additional insurance that I need to take a look at? My homeowners insurance is currently with State Farm, and I see that they got sued bigtime, and lost, by all the poor people in Louisiana for not paying claims to their policyholders. That got me thinking, how much at risk am I of losing my substantial investment into paying off my home? What circumstances if any would cause a total loss to my home with no coverage from my insurance company?

I assume there must be some people here who have their houses paid off. The likelyhood of losing your home is slim I'm sure, but surely the thought has crossed your mind. Is there anything you did extra to insure your investment?

[PrincessPerky]

flood..they just sent out a report to us in NC that floods are not covered by regular homeowners insurance.

didn't worry me too much being at the top of a hill...would have to be an ark worthy flood to harm us....

[JanH]

Even after I pay off my house, I am going to keep replacement costs in insurance, windstorm, and flood. We are in a hurricane zone and need to cover all the bases. They may separate windstorm coverage next year when we renew so I will have to cross that bridge when I get to it. The insurance company ran the numbers to rebuild in our area because costs here are higher than others, so I had to increase overall rebuilding costs. Bundling house and auto helps with discounts on the house. I also increased deductibles. (we have state farm and I am not sure about what happened in those areas. We didn't have any problems with them after Hurricane Rita and they were very helpful compared to other insurance companies. I guess it was the windstorm/surge debate, but I don't know why people on the coast didn't have flood insurance. Unless maybe flood doesn't cover what they went through.)