When a home is in foreclosure; does AIG pay insurance?

When a homeowner is unable to make their mortgage payments, the lender has the right to foreclose on the property. This could leave many wondering what happens to their insurance policy, particularly if they have coverage through a company like AIG. So, when a home is in foreclosure, does AIG pay insurance?

Yes, AIG will typically continue to pay out on an insurance policy even if the home is in foreclosure. However, it’s important to note that the insurance policy must be kept current and paid up to date for any claims to be processed.

While AIG will continue to honor its obligations under the insurance policy, there are a few things homeowners in foreclosure should keep in mind. Here are some related FAQs and their answers:

1. Will my insurance policy be canceled if my home is in foreclosure?

No, AIG will not automatically cancel your insurance policy if your home is in foreclosure. However, it’s crucial to keep your policy up to date to be eligible for any claims.

2. Can I still make a claim on my insurance policy if my home is in foreclosure?

Yes, as long as your policy is current and paid up to date, you can still make a claim with AIG even if your home is in foreclosure.

3. Will my insurance rates go up if my home is in foreclosure?

Foreclosure alone should not impact your insurance rates. However, if there are other factors, such as missed payments or non-payment of premiums, your rates may increase.

4. Can I transfer my insurance policy to a new home if my current residence is in foreclosure?

Yes, you can typically transfer your insurance policy to a new home if your current residence is in foreclosure. Be sure to contact AIG to discuss your options.

5. Will AIG still cover damages to my home if it’s in foreclosure?

Yes, AIG will still cover damages to your home if it’s in foreclosure, provided that the claim falls within the terms and conditions of your policy.

6. Can I cancel my insurance policy if my home is in foreclosure?

You have the option to cancel your insurance policy if your home is in foreclosure, but it’s not recommended as it could leave you unprotected in case of damages.

7. What happens to my insurance coverage if my home is foreclosed upon?

If your home is foreclosed upon, your insurance coverage may still be in effect until the policy’s expiration date, as long as premiums are paid.

8. Will AIG continue to provide liability coverage if my home is in foreclosure?

Yes, AIG will continue to provide liability coverage if your home is in foreclosure, assuming your policy is current and premiums are paid.

9. Can I renew my insurance policy if my home is in foreclosure?

You should be able to renew your insurance policy even if your home is in foreclosure, but it’s essential to stay in touch with AIG about any changes to your situation.

10. Will AIG cover additional living expenses if my home is in foreclosure?

If your policy includes coverage for additional living expenses, AIG should honor that coverage even if your home is in foreclosure.

11. Can I make changes to my insurance policy if my home is in foreclosure?

You may still be able to make changes to your insurance policy if your home is in foreclosure, but it’s best to consult with AIG about any modifications.

12. What should I do if my insurance claim is denied while my home is in foreclosure?

If your insurance claim is denied while your home is in foreclosure, you should review the denial letter and contact AIG to discuss the reason for the denial and possible next steps.

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