I need help. My wife and I are in the process of buying out her brother from a family lake house, and the only way we can afford to do that is to take a loan/line of credit against the house. 1 of the requirements though is the house needs insurance before we can get the loan. Problem though is we have had 3 appraisals done and all three have called the house a tear down. The property it sits on though is worth about $175k. The reason the house is considered a tear down is because the foundation is sinking, we just don't have $60k to fix it right now, or $200k to just build a new house. Questions Can I get home owners insurance on a tear down house? Can I get a loan against the land instead? Can I get some type of limited liabilty to help with the loan application? any help or suggestions will be greatly appreciated. Thanks Frank

About The Expert

Amy Bach

Amy Bach has been a professional advocate for insurance policyholders since 1984 and an attorney since 1989. She co-founded United Policyholders in 1991 and serves as the organization's Executive Director and primary spokesperson; shaping and overseeing the Roadmap to Recovery™, Roadmap to Preparedness, and Advocacy and Action programs. She is a nationally recognized expert on insurance claim and legal matters; frequently interviewed in print and broadcast media, and the author of numerous publications including "The Disaster Recovery Handbook", "WISE UP: The Savvy Consumer's Guide to Buying Insurance" and consumer tips and guides in the UP Claim Help Library.  Recognized by Money Magazine as a Money Hero, Bach is in her eighth consecutive term as an official consumer representative to the National Association of Insurance Commissioners, and is a member of the Federal Advisory Committee on Insurance.  In 2019, Bach was appointed to a 3 year term as a member of the American Bar Association Standing Committee on Disaster Preparedness and Response.