Can I keep my insurance payout instead of rebuilding my house?

A tornado destroyed my house; there's really nothing left to fix. I only have $24,000 left on the mortgage and I don't feel like rebuilding from the ground up. Can I use the money from my insurance claim to pay off the mortgage and keep whatever cash is left over?

Answer
“I’m sorry to hear about your troubles. Since your house is a total loss and you do not wish to rebuild, you can keep the insurance money that is left over after paying off any debt you have on the property and also cleaning up any debris. You would still own the parcel of land that the home once sat on, which can either be kept or sold. “
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Alexah Grinnell
Answered on Apr 05, 2021
Alexah Grinnell has been working in the insurance industry for 5 years with a primary focus of coverage consulting in the sales department. She has been working for Jerry Insurance since July of 2019 and has also has experience working for AAA and State Farm. She currently lives in Rochester, NY with her husband and 3 kids
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