Insurance Series-Home, Disability and Life

Home Insurance

When you purchase a home, it is prudent to protect yourself in the event of calamity such as fire, flood, storm and even liability damage. If you have a mortgage on your home, the lender you are with, will require proof of insurance prior to funding. This proof is often in what’s commonly called a “binder”.

There are many carriers and prices vary, so it is important to shop around and try to combine home and auto insurance to get the best rate. Read the policy and make sure you understand what you are covered for and what may be omitted in your coverage. Also, pay attention to what may be a site influence to where you live, is it flood prone? Has there been sewer back up issues in the area? Has there been severe storms, fire, or any other influences that could affect your coverage? Also is your home insured for replacement or rebuild, current to the condition it is in today? You may have granite countertops but may find the insurance company will only pay for arborite replacement. So, you will want to speak with a licensed insurance broker to ensure your home insurance meets your exact needs.

Disability Insurance

You have just incurred the largest debt you will probably ever have in your life, so how will you service this debt if you get sick or hurt and can’t work?

The number one reason people lose their home is the inability to make mortgage payments due to becoming hurt or sick and can no longer make that mortgage payment. When you have a mortgage loan or any other loan, that loan was signed with the understanding that it will be paid on time and in full regardless of changes that might have occurred in your life. It is your responsibility to continue making your payments regardless of your health issues.

Life Insurance

You should always plan for the worst and hope it doesn’t happen. In the event of your death how would your family survive and continue? If you have any dependants you owe it to them to make sure they have security in the event of your demise. The same goes for your spouse, and if you have children at a minimum you should have enough life insurance to pay off the mortgage if you are gone. Think that, is it? Think again, your surviving spouse must carry on, yes the house will be paid for, but they must feed, clothe and raise the children and that is going to be expensive. Being mortgage free helps but it doesn’t cover all the bases.

Lender mortgage insurance, is not mandatory for a borrower to qualify for a mortgage. However, it is highly recommended that you take the time to find out if what you may have in place to cover your mortgage obligation should the unthinkable happen to you. We highly recommend that you seek the advice of an independent Disability and Life Insurance agent however we can discuss mortgage insurance that has life and disability components, so you at least have something in place immediately until you have the time to discuss more comprehensive coverage with a professional insurance broker.