A first-time home buyer has a lot to learn about homeowners insurance. It is meant to protect your investment and ensure you can recover if something happens to your home. For most people, it is the most significant bill they pay every month. No one wants to lose their home due to a few missed payments. While you may rely on your homeowners insurance for many things, your mortgage payments usually fall outside that category. Let's continue reading and delve into this topic to understand it better.
Your mortgage payments are your responsibility. If you become ill or lose your job and can't make the payments, your homeowners insurance won't be able to help you. Although they won't help you pay your monthly payments, a good homeowners insurance policy can help you in other ways. A homeowners policy is meant to cover the cost of repairs or replacing your home if considered a total loss.
Your homeowners insurance does provide compensation in the form of “loss of use” coverage. If, for some reason, you can't live in your home due to several types of damage, you will receive enough compensation to ensure you can comfortably live while you are displaced from your home. You will still need to make your mortgage payments each month.
Loss of use coverage will pay for temporary lodging, increased gas mileage, laundry service, and additional food expenses that you may have to pay since you cannot use the facilities at your home. Instead of paying for your mortgage, your coverage will pay for extra living expenses you may incur. Loss of use is only available for the time that you are not able to live in your home. Your coverage will cease once your home has been repaired and you can move back.
Since your homeowners coverage won't assist with your mortgage payments, you must purchase a separate policy. A mortgage protection insurance policy will protect you if you fall ill or lose your job and cannot make your payments on time. The terms of your policy will determine whether a percentage of your costs is paid indefinitely or your whole payment will be paid for a specific amount of time. Check with your insurance provider about the policy terms and understand them effectively.
Paying your mortgage is a huge responsibility. There are ways you can protect yourself if you are worried that an unexpected event may prevent you from paying for your home. Consult with our experienced agents at Fuller Insurance Agency. We can help you determine what types of coverage you need to ensure you are always fully protected. Contact us today to schedule an appointment. You can also call us at (800) 640-4238 for any assistance.