The ownership of property brings with it the responsibility of protecting the valuable asset against damage and the need for personal insurance to provide funds to pay off or continue the mortgage repayments in the event of illness or death of the borrower. Although some insurance is mandatory for mortgaged property, the vast majority of purchasers elect to take out adequate insurance cover to protect their property and for their own peace of mind.
Personal insurance falls into two main categories. A Sickness and Accident Policy will provide a regular weekly income in the event of illness or an accident of the insured person. This is particularly helpful for self-employed people and in those cases where the insured person’s job is terminated because of the duration of the illness. A Mortgage Protection Policy will provide a lump sum paid on death of the insured, sufficient to discharge the mortgage loan and any other long term debts. Both policies give absolute peace of mind to homeowners and your RE/MAX agent can help with further information and advice.