By Bryan I Collins
The intricacies of mortgage cover insurance for your home is often not included in the purchase of your home. Should you wish to have your mortgage covered, you often have to request it from the lender as an added benefit. An important aspect is also that there should be provision for the payment of the bond should you pass on, that is, the life insurance part. The other part of mortgage insurance cover also deals with whatever physical damage could occur to the home.
It is important that you ensure that you understand fully what you are in need of. By having coverage or no coverage could mean the difference in your home being paid up or fixed should any damage occurred. There is also the necessity of making sure that the cover is adequate. You have to look at what the mortgage cover offers you. Some of the aspects you should consider should you need to purchase or renew this cover are the following:
· You need to provide protection for your family in case you pass on. In this instance you should look at a life insurance policy that would protect your mortgage as well as other aspects such as money for your beneficiaries.
· Your premiums are guaranteed for the life of the policy and does not reduce even of the mortgage is reduced.
· The insurance company or the lender will help in calculating life insurance for you.
· It is better to have the insurance linked to your mortgage through the lender. This will mean that you would pay one premium.
· There is also the possibility that you would lose your mortgage insurance cover should you move to another lender. You should therefore make sure that you calculate the cost for the different insurance to the current one you do have in place.
There are different types of insurance policies available for all of the needs a homeowner might have. It would be a sad case if your home is hit by a tornado and you have not made provision for this in your policy. It is therefore important that you go through the policy with a fine-toothed comb so that you know exactly what the policy covers. There are many different aspects that you can have covered. Some of it includes: flooding from overflowing riverbanks or heavy rains, water penetration, sewage overflows, mold, collapse of buildings, damages to the pool, and so forth.
The most important is the fact that the loan is covered in case of death, that is that the property will be paid up should you pass on. Added to that is also the need that the house is covered for the damage that could be caused. Various companies have different offers covered in their policies. It is important that you make sure of the content of the policy so that you know what you can claim for. You might want to add cover that is missing in your current policy.
Bryan Collins is a life cover specialist, specializing in Discounted mortgage insurance and Endowment Insurance
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