How Well-Insured Were the Homes?
Will a property owner, handed a $100,000 insurance check for major repairs, invest it in a house worth maybe $50,000?
Owners will ask “do I walk away with the money?” This is a huge, huge issue.
–State Rep. Joe Mullery, whose district includes the North side, and who resides there; The Star Tribune (5/31/2011)
How well-insured were the hundreds of North Minneapolis homes damaged by tornadoes 10 days ago?
We’ll know in about six months.
That’s when it will be apparent whether home owners have made claims, and are well on the way towards restoring their properties; or, owners were un (or under)insured, in which case their properties will be conspicuously neglected and deteriorating further.
Even if the homes were properly insured, it remains to be seen whether the owners will plow the proceeds back into their properties, given prevailing real estate prices.
Which way will things go?
Stay tuned . . .
P.S.: Don’t lenders (“mortgagees”) require borrowers (“mortgagors”) to take out property insurance?
They do, but a lot of north Minneapolis properties have been purchased with cash the last few years.