Many homeowners are NOT aware of the limitations of their homeowner's policy. For instance, it may not pay your monthly mortgage payment if your home is damaged or destroyed by a disaster.1 In other words, even if you are unable to live in your home,2 YOU are still responsible for paying your monthly mortgage.
Please check your homeowner's policy to see if your mortgage payment is protected. If not, take corrective action immediately by enrolling in the Disaster Recovery PlanSM. Here's a look at how this affordable insurance plan protects you in ways that your homeowner's insurance may not:
| Benefit |
Disaster Recovery Plan |
Most Homeowners Insurance |
| Pays your monthly mortgage payments for up to two years |
Yes |
Check your policy |
| Pays the balance on your mortgage if your home is permanently uninhabitable due to a disaster after any other applicable insurance is applied3 |
Yes |
Check your policy |
| Pays your homeowners policy deductible up to twice a year, with a maximum benefit of $1,0004 |
Yes |
No |
Think about it: if you're not able to live in your home, you are still obligated to pay your monthly mortgage payment. The reality is — more than likely — your homeowners insurance will not cover your mortgage payment.
We advise you to give this opportunity your consideration. If you have any questions, call ACE's toll-free number: 1-800-234-7354. Knowledgeable representatives will do an excellent job of clearly explaining the benefits of this important insurance coverage.
1. Limitations: With DRP, any natural or household disaster that causes damage to the structure of your home is covered except for the following: war; events affecting or causing allergies; constant or intermittent noise; pollution/contamination; normal wear & tear and/or deterioration; settling, shrinking, bulging or expansion; riot; neglect; vandalism (if residence is unoccupied more than 60 days); interruption of power from off-premises source; pre-existing conditions; intentional loss; seizure, destruction, or confiscation by any governmental or public authority; faulty, inadequate or defective work or repairs.
2. Coverage applies to primary residences only. Rental properties, mobile homes and manufactured homes are not eligible for coverage.
3. Up to a maximum of $250,000 or your current loan balance, whichever is less. Permanently uninhabitable coverage is excess insurance meaning any other insurance that can be applied to pay off the mortgage will be used first. Permanently uninhabitable coverage only applies in the event of condemnation of the land or movement of the land on which your property exists which permanently prohibits repair or reconstruction.
4. Actual benefit amount is based upon your homeowners policy deductible when a disaster forces you from your home for 48 hours or longer.
