2017-02-10
What Happens to The Mortgage When Your House Burns Down?
- Advice
In the case of fire, you may be wondering what sort of coverage you can have in Japan. If you enroll in a variety of insurances, you are likely to get reimbursements for your losses.
Fire insurance
Fire insurance protects from financial loss when your house, which you bought with a loan, suffers heavy losses from lightning and fire.
If your house burns down and you cannot live there, you need to spend money rebuilding or buying another home. In addition, even if your house burns down, you have to keep repaying the loan until it is paid off. In this case, if you take out fire insurance, you can get insurance money, meaning you can rebuild or spend it paying off your loan.
In regards to fire insurance, buildings and furniture become the object of compensation.
When it comes to insurance money in fire insurance, there are two types: accident insurance and expense insurance.
Accident insurance
Insurance covering house and furniture damage
Expense insurance
When you have to clean up and disposed of a damaged house, this insurance guarantees a sum of money as a token of sympathy.
The contract price
In terms of contract price, you should get the purchase price rather than the borrowed price so that you spend it rebuilding or repaying the remaining loan.
In conclusion, when you get a loan, you have to seriously think about getting fire insurance at the same time. In terms of the way that you choose fire insurance, first of all, you have to check the guarantee contents. Secondly, what is it the object of guarantee and the amount of guarantee. Thirdly, the term of payment and the way of payment.
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