Should I Renew My Insurance When I am Short Selling My House?

We recently received a question from Kyle. Here was his question. “I'm trying to short sale. I received a note from my Insurance agent that my Homeowners insurance will be cancelling as of this month because the insurance company went under.
Sept. 19, 2011 - PRLog -- My insurance agent told me that he can place me with the State run insurance agency for $1,900.00, but I will have to pay the money by the end of the month.

I do have $924 in my lender’s escrow account. What do you think I should do? Kyle.”
Here was our answer: Kyle, Let me ask you a question. Who is the beneficiary of any insurance for your home?

If you are short selling, then you are probably upside down. You have no equity. So if the house burns down tomorrow, then you won't get any money.

Who will get the money? You lender will, that's who. Keeping the insurance in place benefits you zero. Besides, most lenders will place insurance for you if it expires.

You are probably tight financially. So why take food out of your kid's mouth to benefit your lender? It doesn't make sense to me unless you have lots of the extra money.

That $900 can probably be used better elsewhere. Obviously there are risks in not renewing. So, educate yourself on those risks and make the decision for yourself. Thinking about a short sale?

I can help you short sale your property and get back on your feet. Send me an e-mail at I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me,
Lori Brown at 810-543-8896

Lori Brown is a CDPE Realtor at RE/MAX Advisors. Southeastern Michigan Short Sales Realtor:

Phone:   810-543-8896       .
View My homes for sale at

Thanks for your interest,

Lori Brown
Realtor Re/Max Advisors
CDPE-Certified Distressed Property Expert
CIAS-Certified Investor Agent Specialist
Office: 586-725-1900 / Cell: 810-543-8896  

We specialize in assisting homeowners facing financial difficulties in Macomb, Oakland and St. Clair Counties, including all areas of Southeastern Michigan.  By exploring options to avoid foreclosure through dignified solutions including the short sales process, clients receive sound real estate advice.

We are currently offering our services in Bruce Township, Washington Township, Armada, Ray Township, Richmond, Lenox, Shelby Township, Macomb Township, Chesterfield Township, Sterling Heights, Clinton Township, and Harrison Township in Macomb County and Berlin Township, Riley Township, Wales Township, Kimball Township, Port Huron, Columbus Township, St. Clair Township, Casco Township, China & East China Townships,  Ira Township, Cottrellville Township, Clay Township and Algonac in the St. Clair County areas. Rochester Hills, Rochester

IMPORTANT GOVERNMENT DISCLOSURE: You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer). If you reject the offer, you will not have to pay us for our services. The above brokerage is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.
Source:Lori Brown
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Tags:Short Sale, Foreclosure, Mortgage, Help, Banks, Debt, Homeowner, Specialist, Bankruptcy, Credit, Avoid, Real Estate, Maco
Industry:Real Estate
Location:Chesterfield Twp - Michigan - United States
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