Your new home is a valuable investment. Once you have made the decision to buy a home, insurance becomes an important factor and there are different types to consider. Our Mortgage Specialist is equipped to help explain what may be required by your mortgage lender as well as other important options available to you to help protect you and your family.
This type of insurance covers the home you live in as well as your contents. You will be required by your mortgage lender to provide proof of fire insurance on your home at the time of closing as well as naming your mortgage lender in the policy.
Mortgage Loan Insurance:
For most people, the hardest part of buying a home — especially a first home — is saving the necessary down payment. Purchasaers with less than 20% downpayment are required to be insured through their mortgage lender's high ratio mortgage insurer. Mortgage insurance protects your lender against payment default.
Mortgage, Life and Health Insurance:
You need to be prepared for the unexpected. This type of insurance can help protect you and your family in the event of disability by ensuring your regular mortgage payments are made if you become disabled or by paying off your mortgage in the event of death.
Most financial lenders today, require an insurance policy issued by a company on the closing of your home that assumes the risk once title has been transferred to you, it will protect you from mistakes, omissions or challenges to the title. When purchasing a new home, it is important to ensure that you have good title, which means the home has been properly registered, is described in all mortgage documentation, and no one else holds any claims to the property. The premium for title insurance is usually less expensive than the cost of a typical title search. Your lawyer can explain the benefit of this insurance.