Casuality Loss on my home

[pkay12]

What is the name of your state (only U.S. law)? Texas

My home burned at the end of 2008 and I'm trying to understand how to calculate my losses. I had insurance that covered the house only which totaled $178,000 but the insurance check was mailed to my mortgage company and after they took the balance of the mortgage still owed, I received a little over $100,000. My question is do I use the actual amount I received or the full amount of $178,000.

Thank you

[Some Random Guy]

You received $100,000 PLUS your outstanding loan of $78,000 was paid off. This means that you were given $178,000.

[FlyingRon]

If the house is only worth $178,000, then you have no loss.

I'm confused, why didn't you rebuild? Are we talking about a trailer?

[Kiawah]

I'm confused, why didn't you rebuild? Are we talking about a trailer?

Now that is my kind of trailer !!! - $178 K

[Banned_Princess]

Please I have never given such little insurance, 178k, might even be less then every policy has in "other structure" that is a very tiny total loss on a property.

Maybe on a trailer.

but "casualty loss?" Doesn't that mean someone died in your house fire? or was your home totally destroyed.

Why didn't you rebuild? Why weren't you insured enough to rebuild?

I too am lost.

[LdiJ]

Originally Posted by Banned_Princess

Please I have never given such little insurance, 178k, might even be less then every policy has in "other structure" that is a very tiny total loss on a property.

Maybe on a trailer.

but "casualty loss?" Doesn't that mean someone died in your house fire? or was your home totally destroyed.

Why didn't you rebuild? Why weren't you insured enough to rebuild?

I too am lost.

Using this example...a casualty loss is if the home burns down, and the insurance isn't enough to fully cover the loss or to rebuild.

Lets say that the house would have appraised at 200k, but the insurance covered 178k. That would be a 22k casualty loss.

Or, lets say the home would have appraised at 200k, and the fire destroyed only a portion, and the insurance covered the repairs, but now the home only appraised at 175k. Again, you would have a 25k casualty loss.

There are many other examples of casualty losses, and they have nothing necessarily to do with anyone dying.

You should also be aware that 178k in many states and/or many areas within a state, would cover fully rebuilding a decent sized home AND replacing the contents. I am in Indiana and 178k would easily replace my 1800 sq ft home and its contents.

[Banned_Princess]

Originally Posted by LdiJ

Using this example...a casualty loss is if the home burns down, and the insurance isn't enough to fully cover the loss or to rebuild.

Lets say that the house would have appraised at 200k, but the insurance covered 178k. That would be a 22k casualty loss.

Or, lets say the home would have appraised at 200k, and the fire destroyed only a portion, and the insurance covered the repairs, but now the home only appraised at 175k. Again, you would have a 25k casualty loss.

There are many other examples of casualty losses, and they have nothing necessarily to do with anyone dying.

You should also be aware that 178k in many states and/or many areas within a state, would cover fully rebuilding a decent sized home AND replacing the contents. I am in Indiana and 178k would easily replace my 1800 sq ft home and its contents.

Thank you for clearing up the casualty loss for me, in short, its a major loss of equity due to lack of / under insurance. ? ok.

Ah, the policy's I write are for NY on LI, so probably our homes' replacement cost is high for whatever reason. an 1800 sq ft home, depending on the style and year built, would need a 300k policy at least. with a "guaranteed replacement cost" rider attached. I never allow a homeowner to leave the office without it!

And people try to fight me -All the time- about how much to insure their house for. I have software that calculates it, I know what they need to insure it for.. shheeesh. They would be really upset with me, if their house burned down and they were forced to take a casualty loss.... (sweet, using it in a sentence!!! lol)