What Happens if You Have a Reverse Mortgage and a Tornado or Other Disaster Destroys Your Home?

The devastation in Oklahoma from the massive tornados is overwhelming. It is a human tragedy with entire neighborhoods flattened.

Catastrophes like this serve as an important reminder to make sure you have the proper preparations in place should a natural disaster strike your home.

Evacuations plans, emergency supplies and communication protocols are important. Equally important is to maintain your insurance policies on your home. When you secure a Reverse Mortgage, you maintain ownership of your home. You must therefore protect yourself by continuing to properly insure your home.

If you have a Reverse Mortgage and have maintained your insurance (as is required), you will be protected and compensated in the same way you would if you owned your home outright or had a regular mortgage.

For more information about  how your household can prepare for a disaster, please consult FEMA’s publication called, “The Citizen’s Role in Disaster Preparedness” .  Also useful is the American Red Cross’s information on “Be Red Cross Ready.”  They have a special section for senior preparations.

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