There are two types of insurance that homeowners should have in place for peace of mind.
The first is life insurance, which banks require that you have in place when you’re buying a house unless, of course, you have paid for the full amount in cash. This is to protect the banks’ loan but also to protect your family – if anything happens to you, your insurance will cover the remaining bond and your dependents will be able to keep the house, either to live in or to sell and downsize. You have to have this when you buy a house, so life insurance is a non-negotiable part of home ownership. Think of it as keeping everyone protected against their investments; the bank investing in you, you investing in your family’s happiness.
The second type of insurance that often comes up when you’re buying a house is homeowners insurance. This is often split into home contents (e.g. your TV, furniture and other possessions inside the home) and household or building insurance, which protects the physical structure of your house against damage and destruction. You will generally find that you are required to take out household insurance so that should your house be destroyed in a natural disaster such as a fire, the banks can protect their loan and you are covered and won’t be left in financial ruins.
Often, household insurance will include home contents insurance, though not always. This is protection for the contents inside your home such as your TV, furniture, appliances and other valuables. It would mean that if you were to fall victim to a robbery or anything else which may result in your valuables being destroyed, lost or stolen, you can recoup the costs. Though this is not a requirement, it is a sensible purchase as replacing everything in your home can be a very costly exercise without any insurance!
Remember that most of the time the banks will suggest a supplier to you for these insurance needs – often provided in house. You do not, in fact, have to go with the provider they suggest and you are completely free to choose your own insurer.
If you’re looking at buying a house and want to get life insurance, you can get a quote from MiWayLife.