re: Never pay off your house?

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Example B: You live in a $500k house in Lakeview that you owe $500k on, but you have $500k in the bank. Your house got totalled, you got $250k in flood money, you sold your lot for $50k. You have $800k and owe $500k. But you are holding $800k. You are in a much better position to deal with a bank, run away with the cash, put it in protected assets, etc.

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you wouldnt get the 250,000 insurance money nor be able to sell your lot for 50,000. the insurance money would go to the mortgage holder.