A big part of creating a financial plan is to be prepared for those unexpected moments life can throw at us. So how can you protect your home? Below we break down what you need to know.
Do I need mortgage, life and disability insurance?
Mortgage insurance provides protection if you don’t have sufficient personal life or disability insurance. If you need to make a claim, mortgage insurance will pay off the outstanding balance on the mortgage or make the mortgage payments while you are unable to work.
Through our partners at CRI Canada, we offer life and disability insurance for your mortgage. This can protect you from losing your home if you’re unable to make mortgage payments due to injury, illness or death. It sounds a bit scary but it’s so important to consider.
A personal will provide a lump sum payment to your beneficiaries if you pass away. It can be used for paying off the rest of your mortgage or help take care of other financial needs for your loved ones.
And replaces a portion of your lost wages if you’re unable to work for an extended period of time.
If you think that these are good safety nets to have in place, then yes you probably need a plan.
What’s the bottom line on protecting your home?
Explore the benefits of all of these types of insurance options with your financial planner. They can walk you through the options available and help you determine what suits your needs. Don’t hesitate to reach out for help.
How does house insurance work?
In case of an earthquake or fire (even wind and water damage) – get insurance that will cover your home, you, your belongings and protect you from liability to others.
It can also provide you with money for additional living expenses. This’ll help you so you don’t have to stress about how to pay your mortgage.
How can renters protect themselves?
Just because you don’t own a home, doesn’t mean you shouldn’t get protection. The owner of the property will likely cover the building, but not your personal property.
As a renter, you could be held financially responsible for the value of the house, if your actions caused damage – such as fire or water damage – to the place you’re renting.
Look into getting renters insurance to protect both your stuff and your liability.
Come up with a plan.
Talk with a trusted, licensed insurance broker before you buy to learn your options and come up with a plan together.