Another big benefit provided by most homeowner’s policies includes liability protection. If someone visiting your home gets injured and you’re charged with negligence you could be subject to paying attorney’s fees, court costs, medical expenses and payments levied in a judgement. A good homeowners insurance policy should help in paying these expenses. Many policies even pay a no-fault medical benefit if your friend or neighbor becomes injured in your home. In this case, they can simply submit their medical bills to your insurance company for payment without filing a liability claim against you.
What’s Not Covered?
Another situation not covered under your homeowners insurance policy is the payoff of your mortgage in case you die prematurely. There are, however, a number of other types of policies you can buy that will provide the money necessary to pay off your mortgage in the event of your death, each of which is some specialized form of life insurance. They include:
- Mortgage Protection Life
Insurance
– this is a relatively expensive form of decreasing term life insurance,
the proceeds of which, in the event you die, is paid to your mortgage
holder to pay off your loan. This may be your least favorable choice.
- Term Life Insurance – you can take out term
life insurance for the same term length as your mortgage loan and, in the
event of your death, your survivors have the option of spending the payoff
money as they see fit, including paying off the home if that’s their
choice. This policy provides your beneficiary the most flexibility.
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