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No, Homeowners insurance is in the Property and Casualty lines and issued with terms of 1 year or less. It is not an investment vehicle and as previously stated it does not build value over time.

Homeowner insurance, like Auto insurance or Healthcare insurance is a form of risk transference. In other words, we pay a premium to the insurer, the insurer then agrees to pay up to the specified amount "if" in the event of a covered loss. The rates charged reflect short term risks of what losses may or may not happen within that year or term.

Life insurance is a different kind of animal in that there is little risk involved. It is assured that we will all die eventually, there is no "if" component. Borrowing is not a problem in that the funds would be paid out at some point anyway. If we fail to repay a loan against our life insurance policy then the insurer can simply recapture those funds when we die by subtracting the balance owed from the policy proceeds.

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8y ago
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Wiki User

13y ago

No it doesn't build value like life insurance it is more like car insurance. You pay & never see it again.

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