[blackdog]

Homeowners insurance does not payout $ just because your house burned down or was damaged. It pays to contractors to replace or repair the home.

[Responsibility2nd]

Homeowners insurance will pay the mortgagee in cases like this, but not the owner. Up to the loan balance only.

So if these bulls owed $200,000 on a $276K house the insurance company will protect the lienholder only up to the $200K.

[laotzu]

Homeowners insurance does not payout $ just because your house burned down or was damaged.

Yes it does.

It pays to contractors to replace or repair the home.

No it doesn't.

[SeaHawkFan]

Not true. An insured has a contractual relationship with the insurance company to pay them for damages. The homeowner can choose to hire a contractor, or not. If they don’t, they must prove they actually completed the repairs before they get the replacement cost of repairs rather than actual cash value.

[IrishBrigade]

It pays to contractors to replace or repair the home.

Maybe they just wanted a new house, and couldn’t affford repairs...or maybe they’re just stupid...