use of insurance proceeds

Discussion in 'Life Insurance, Annuities & Other' started by shortstop19, Dec 9, 2011.

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  1. shortstop19

    shortstop19 New Member

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    A house that is owned by my brothers, sister and me sustained wind damage and a claim was filed. There are are other legal issues between my sister and me and I insured the property through my insurance company. Do I have to use the insurance proceeds to make repairs or can the proceeds be split between the four of us? Since we own as tenants in common, can I insure only my share? Is there legal authority that dictates how insurance proceeds can be used?
     
  2. disagreeable

    disagreeable New Member

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    Two issues generally come into play here. First is does a lender have an interest? If there is a lender, you are contractually obligated to repair the premises. Second, it would be fraudulent to continue insuring the property after you did not repair it. There are terms in your insurance contract you need to investigate to avoid liability.
     
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