All the Insurance You Need

Category Buyer Advice

If you are buying a property with the aid of a home loan, as most people do, you will probably require the following three different types of insurance:-..
Homeowner’s insurance (HOC), which provides cover against damage to the structure of a home in the event of disasters such as fire, flood, wind and hail. This type of policy protects the bank from loss of the “asset” that secures the home loan, and also protects the homeowner against possibly having to pay the outstanding balance of the loan even when the home has been badly damaged or destroyed.

Homebuyer’s insurance, sometimes also called “bond insurance”, which is a type of credit life insurance specifically intended to settle any outstanding balance on the home loan if the borrower dies or is incapacitated. This will protect your family against having to take over the payments on the home loan in order to settle your debt – or worse, having to leave your home if they cannot afford to pay. Your lender might not insist on this cover but most would certainly prefer you to have it.

Householder’s insurance, which quite simply covers the contents of your home, whether owned or rented, to the extent that you decide. This is called “short term insurance” and most companies providing such cover offer a choice of comprehensive insurance that includes theft, or insurance limited to damage only, and in most cases they can also provide vehicle cover.

It is important to note that you are free, as a homebuyer, to purchase all or any of the three forms of insurance above from any provider of your choice – but that home loan lenders are also free to withhold loans from those they consider under-insured.

Issued by Chas Everitt International
For more information contact
Tel: 011 801-2500
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Author: Barry Davies

Submitted 08 Jul 16 / Views 621