By law, we are required to take out insurance to cover damages assessed property value. Typically, the lender is going to suggest we hire insurance, but can not force us to hire him. The trouble is that banks often we are pushed to your insurance policy, playing with increasing interest. But we could do with another company and designating the entity as a beneficiary of the policy.
In addition to securing the continent or the building structure, it should cover other contingencies. For this there are the following types of insurance:
Household comprehensive insurance
What is called damage insurance. Usually include cases of fire, water damage, glass breakage, theft, liability for damages to third parties, etc. .. in these cases insurance will take care of everything. This insurance is recommended for all housing, whether it is contracted for a mortgage.
Life insurance or loan repayment
This method covers the risk of death or disability of the holder of the loan. If this occurs, the family should not take over the debt, the insurance would be responsible for returning the bank to pay the remainder of the loan. They are usually not particularly expensive but this insurance is not mandatory.
However, these conditions tend to report different types of insurance and benefits and guarantees.
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