4 types of insurance home buyers need
As a homeowner, there are several types of insurance that you may need to consider.
Here are the 4 types of insurance home buyers need:
Homeowners Insurance
This type of insurance is designed to protect your home and personal belongings from damage or loss due to unexpected events such as fire, theft, or natural disasters.
Homeowners insurance typically covers both the structure of your home and your personal property.
Mortgage Default Insurance
If you are taking out a mortgage to purchase your home, your lender may require you to purchase mortgage default insurance.
This type of insurance is designed to protect the lender in the event that you default on your mortgage payments.
Title Insurance
Title insurance is designed to protect you from financial loss in the event that there are issues with the title to your property.
This type of insurance can provide coverage for a wide range of issues such as liens, errors in public records, or undisclosed heirs.
Life and Disability Insurance
While not specific to homeownership, life and disability insurance are important types of insurance to consider as a homeowner.
Life insurance can help to provide financial support for your loved ones in the event of your unexpected death, while disability insurance can help to provide income replacement if you become unable to work due to a disability.
Recently I had the unfortunate experience of working with a client who had purchased a home a few years back but had opted to decline the life and disability insurance. In the meantime he had married and had two children. He called to let me know that he had received a cancer diagnosis and had only a short time to live. He knew he had declined life and disability insurance but wondered if there were any other options available to help his wife and children after he passed.
Unfortunately, once his diagnosis was confirmed, there was no way for any insurance provider to sell him a policy.
Definitely one the most important of the 4 types of insurance home buyers need…and often the most overlooked 🙁
Conclusions and Further Thoughts
It’s important to speak with an insurance professional to determine the specific types and levels of insurance coverage that you may need as a homeowner, as everyone’s circumstances are unique.
–
Sincerely,
Michael
PS – One of my hobbies is blogging about mortgages, debt and government policy. During the day I’m a MORTGAGE BROKER in Kelowna, BC!
Check out the Huber Mortgage Home Buyers Guide HERE
