How many property owners and investors know that there is insurance to help meet your mortgage repayments should you fall into financial difficulty, be unable to work due to injury or illness or are made redundant.
There are four different types of insurance available to property owners and investors they are:
Income Protection Insurance: This is insurance which provides for a payment (generally monthly) of up to 75% of a person’s usual salary or wage if they are unable to work due to illness or injury.
Lenders Mortgage Insurance: Is insurance taken out by the lender to protect themselves from default by the borrower. Generally required for home loans.
Mortgage Protection Insurance: This insurance is different to mortgage insurance, as this is for the borrower to protect themselves from failing to make a loan repayment.
Landlords Insurance: This is a policy to cover a property owner from financial losses connected with their property which they let out. Landlords insurance will cover the building itself with the option of including the contents within. The policy normally covers fire, lightning, earthquakes and floods, and some will pay the rent while repairs are being done due to tenants that have damaged the property.
You need to shop around till you find the insurance policy that is best suited for your needs.
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