Once someone on this blog said that having some amount of mortgage gave you home an extra layer of protection against lawsuits. I guess the idea is that the bank has a stake too. Maybe has something to do with some laws . Not sure really if it makes any sense at all.

I had a total fire loss on a primary property with no mortgage and plenty of coverage. I wonder sometimes if the low ball offer the insurance company gave, and the tremendous fight I had to put up to get what was due , had something to do with not having a mortgage. If I had had a big mortgage the insurance company might have made me (the bank)whole right away.