Buying a home is usually the number one investment for most people in their lives. Because of this, it is important to safeguard that investment with the proper insurance policies. From protecting the home itself to protecting your financial well-being, there are several types of insurance that you, as a home owner, need to consider.
In a nutshell, homeowners’ insurance protects the home and everything in it from damage or loss. There are several types but for the most part, homeowners insurance addresses three issues: 1) protecting the home; 2) protecting the contents in the home; and, 3) providing liability coverage. Most policies have several caveats associated as well as rider policies that typically have to be added onto the policy for things like expensive jewelry, electronics, and other high ticket items from damage due to weather or theft.
Nobody plans to be sick for an extended period of time. But in the event of an extended illness, accident or any other occurrence that results in you being unable to work, disability insurance is a policy that replaces a portion of your salary while you’re out of work. Short term disability typically pays a portion for up to three to six months depending on the policy. If performing normal job functions is still not possible at that point, long term disability insurance usually kicks in to cover that portion for an extended period of time. Many employers provide the opportunity to get both of these types of disability but for those who do not, private policies are available. For most of the general population, they forgo disability insurance because of the added monthly expense. But, in the event of an illness or accident, disability insurance makes it possible to continue making that mortgage payment which is a welcome relief in times of crisis.
Mortgage Life Insurance
What if the one of the homeowners on the deed to a home dies and leaves the other holding the bag for the entire balance? There is nothing harder than losing a loved one, but to add the burden of losing your home a short time later can be a tragedy. Mortgage life insurance (MLI) is a policy that pays the balance of the mortgage in the event that the borrower passes. MLI does not cost much at all and offers peace of mind knowing that everyone will always have a roof over their heads.
Life Insurance. One step from MLI is life insurance itself. Life insurance is typically based on a specific amount that is paid out to beneficiaries in the event of death. Typically the amount usually covers living expenses for the survivor for an extended period, which includes the balance of a mortgage. For some, the policy makes it possible to continue to live in the exact same manner that a family always has lived.
Talk with Professionals
The best thing to do is to sit down and talk with professional or an attorney to find out what is available and best fits your needs. Being a homeowner is the ultimate goal of most people and knowing that everything and everyone is safe in the event of any kind of tragedy or catastrophe is well worth considering your options.