If you talk about buying a home with credit, you can also say with certainty to purchase insurance for mortgage credit. Why should it be taken into account? Due to the financing of the mortgage loan, the term is between 10 and 15 years.
And what could happen? During this time, you are exposed to different risk situations. These events can be personal (economic) or caused by nature.
Amount insured when acquiring insurance for mortgage credit
You should receive clear and almost complete information regarding the mortgage credit conditions. But in addition to this, the financial advisor must mention the amount insured according to the value of the home .
Because it is important? The calculation of the premium is the basis, in case of total loss , it is the maximum compensation that can be received. It is essential to make it clear from the beginning, so as not to take risks and suddenly lose all the capital acquired to date. In the case of insurance, the amount of compensation will be applied to the current commercial value of the home.
Insurance classes to acquire with the mortgage loan
This is the time to show home insurance and its coverage.
- Mortgage insurance: It is the one required by financial institutions when a mortgage loan is acquired. Within this insurance are:
- Personal civil liability: Covers personal injuries and property damage. Also property damage.
- Content coverage: Covers furniture and clothing inside the home.
- Housing coverage: Basic coverage of the entire structure of the house and fire and earthquake.
However, as all insurance does not cover completely, and it is necessary to add others: Mentioned below.
- Extended replacement cost: When there is total loss and it is necessary to rebuild the entire house.
- External water spill: Caused by street sewers
- Medical Coverage: Medical expenses generated by accidents within the owner’s home.
It is better to be well aware, and thus acquire the insurance for your proper mortgage credit and not have to regret later.