Does homeowners insurance pay off your mortgage if the house is lost?

No, homeowners insurance typically does not pay off your mortgage if the house is lost. Homeowners insurance is designed to protect you financially if your home is damaged or destroyed due to covered perils such as fire, theft, or windstorm. It can also provide liability protection if someone is injured on your property. However, homeowners insurance policies do not cover mortgage payments or pay off your mortgage in the event of a loss. If your home is destroyed or damaged to the point where it is a total loss, your mortgage lender may require you to pay off the remaining balance of your mortgage. This is where having additional insurance coverage such as mortgage protection insurance (MPI) or a guaranteed replacement cost policy can be beneficial. Mortgage protection insurance (MPI) is a type of insurance that pays off your mortgage if you become unable to make payments due to disability, job loss, or death. MPI is typically optional and can be purchased separately from your homeowners insurance. A guaranteed replacement cost policy is an insurance policy that covers the cost of rebuilding your home to its original state, even if the cost exceeds your policy limit. This can provide added peace of mind in the event that your home is destroyed or severely damaged. It is important to carefully review your homeowners insurance policy and any additional insurance policies you may have to fully understand what is covered and what is not covered in the event of a loss. Additionally, it is always a good idea to discuss your insurance needs with a licensed insurance agent to ensure you have the appropriate coverage to protect your home and financial well-being.