Do You Have Mortgage Insurance & Does It Protect Your Family or Your Lender?
- UFG
- Sep 1, 2021
- 1 min read
Many people are unaware of the three types of coverage's available and the difference between them.
To break it down in simple terms:
Mortgage Insurance (Lender required): Can be required by your lender to protect your lenders interest should you default on your loan for any reason. It does not cover the home or protect you as the homebuyer or your family. It only protects your lender and their interests.
Homeowners Insurance (Protects Property In the event of Damage): Is required by most lenders for anyone who takes out a mortgage loan to buy a home. After you pay off your mortgage, you’ll probably want to continue to have a homeowners insurance policy. While your mortgage lender can no longer require you to carry home insurance after you pay off your mortgage, it’s up to you to protect your home from damage.
Mortgage Insurance (Protects Your Family): Is not required by lenders but is essential to protecting you and your family. This type of mortgage insurance protects you and your family from financial devastation that can come with premature death, disability or critical illness. You can read more about the "Home Protector" plan below.
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