Home Does insurance cover have to match what's owed on mortgage ?

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mark71

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When I bought my house in 2007 the mortgage on it was 220,000 and that's what I put down as the figure for my home insurance.

Since then I've always insured to this value but as everyone knows building prices have radically falling since 2007.

My question is do I still have to insure for what's owed on the mortgage,around 198,000 or can I bring it down to what it would cost to rebuild these days, say 160,000?
 
You have to insure on the mortgage amount ..... for Life Insurance. If you die mortgage gets paid off.

Your house insurance should be to cover the cost of a rebuild which may not be the value of the mortgage.
 
"Does insurance cover have to match what's owed on mortgage ?"

Don't mix up house insurance requirements with life assurance requirements. They are two separate items.
 
Life insurance for mortage amount

House insurance for rebuild cost, don't under insure
 
Is not the case that you can take out life insurance for more then you mortgage i.e. you have a mortgage for 200,000 and you life insurance is for 250,000?
 
You can have as much life cover as you are willing to pay for and can get.
 
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