Coverage to consider when purchasing your new home:

Mortgage Life Insurance

In the event of the death of the owner (owners) of a home, the balance owing on the mortgage is covered by mortgage life insurance, a form of term life insurance.

Particularly for families with young children who could not run the risk of losing their home if the breadwinner should unexpectedly die, mortgage life insurance is highly recommended. It is the safest way to protect the survivors from losing their home because they cannot make the mortgage payments.

Fire Insurance

No one plans on or expects a fire to happen to them. But it is possible and fire insurance on any dwelling is an absolute necessity.

If you have a mortgage on your home, the fire insurance policy you take out should be equal to the full replacement value of the building. As housing costs rise so should the amount of your policy. Your policy should be large enough to help you recover your investment in the building. Policies are generally renewable each year. If you are building or having a home built, you should consider having insurance to cover the building period as an added security measure.

Third Party Insurance

Civil liability or third party insurance is highly recommended to cover your personal liability in the event that a visitor to your property sustains an injury. It protects you in the event the visitor sues you for damages.

Package policies are available to homeowner to provide them with a full benefit package. Fire and third party insurance can also be included in a package protecting you against theft, loss, or destruction of contents as well as property damage caused by Mother Nature.

Personal Property

Coverage for your household contents and personal belonging is usually expressed in your policy as a percentage of the insured value of the dwelling. Insurance for these items is now offered by most companies on a full replacement cost basis. Therefore, care should be taken to ensure there is sufficient insurance to cover the cost of replacing these items with new ones.

Additional Considerations

Most policies contain limits of coverage for certain categories of property such as jewelry, furs, and silverware, to name a few. These limits can usually be increased by separate riders to your policy and should by discussed with your agent. In addition, cabins, boats, and rental property are all examples of items, which can be insured through your homeowner's policy. Each individual's insurance needs are unique. A professional insurance agent will take the time to listen to your questions and explain your policy to you. Significant discounts are extended to homeowners who use alarm systems, which detect intrusion and/or fire.

To sum up, closing costs are lower, protection is higher and most importantly you can move in with complete peace of mind.