Reverse Mortgages Covered From Natural Disasters

House Affected By Natural DisasterThe devastating tornadoes, hurricanes and super storms of the past few years still weigh heavily in millions of Americans minds. Natural disasters also serve has a reminder to make sure that the necessary precautions are in place in case disaster strikes in your own area. In the Federal Emergency Management Agency’s (FEMA) disaster preparedness web training, the government encourages citizens to make arrangements to limit the amount of potential loss.  “As a protection against financial loss, homeowners should purchase insurance on their home and its contents. At a minimum, coverage should provide full replacement or replacement cost coverage.”  Unfortunately some losses are unavoidable, however, with proper planning, some losses can be minimized.

FEMA encourages everyone to know the most likely potential emergency in their region and recommends having a disaster preparedness kit filled with necessities that can see you through a disaster, including water, change of clothing, first aid kits including any prescription medications, extra set of car keys, matches in a waterproof container and personal hygiene items.

Protecting your home is important in case of a disaster.  If you have a reverse mortgage loan, maintaining your home insurance is a requirement of the loan. Your home will be protected within the limits of the home insurance policy just as it would be with a traditional mortgage.

“Seniors are among the hardest hit populations when disaster strikes,” said Sean Kell, CEO of A Place for Mom, in a statement. “Safety during unpredictable weather catastrophes is becoming an increasing concern, and many caregivers are seeking senior communities for a loved one that offer the security of emergency response plans along with needed amenities and services in the wake of bad storms.” For some seniors, that security can be found in their own homes if the proper precautions are in place and the senior’s health allows for living independently.

A reverse mortgage loan can be a beneficial financial tool for seniors that have sufficient equity in their home. Reverse mortgage loan borrowers must be at least 62 years old, own their home, live in their home full time, not be delinquent on any federal debt, and meet with a reverse mortgage loan counselor.  The amount of money the borrower will receive depends upon the age of the youngest borrower, current interest rates, and the lesser of the appraised value of the home, sale price or maximum lending limit.  More information on reverse mortgage loans can be found by calling (866) 751-6105.