Excellent question! All us parents have wondered at one time…
This is one of our most frequently asked questions. If you are looking to purchase a home, you will notice that your lender will have a few insurance requirements that have to be met in order for them to hand over the money. So let’s talk about your options.
1. Home insurance
This is the most obvious one and your lenders usually want to be listed as the ‘interested party’. Home insurance covers the replacement of your home If the worst were to happen. It is crucial that you have the right amount of cover here as you don’t want to be left out of pocket on a pricey rebuild, remember to factor things in such as decks, patio’s, fences and also removal of debris. Your insurance adviser will make sure you have the right amount of cover.
2. Protect those living in the house.
Life insurance is protection for your family. It should allow the family unit to stay in the home if the unthinkable were to happen. We also want to make sure the family has enough time to grieve and recover as best they can before your partner has to return to work. How much cover will you need? Your insurance adviser will work this out for you.
3. Protect your income
Not many families can get by with 3 months or so with little to no income. If you are sick or injured and unable to work, you want to ensure that your mortgage, rates & other bills are covered so you and your family can focus on healing. It’s important to note that ACC may cover you if you are injured in an accident but won’t cover your full income and they will not make any payments for illness.