Job Loss Mortgage Insurance: Security After A Layoff

If you are ever laid off or lose your job, then job loss mortgage insurance could help you save your home. Job loss mortgage insurance, or unemployment mortgage insurance, is insurance policy coverage that pays benefits that can be used to pay your mortgage - in the event that you are laid off or become unemployed through no fault of your own.

In some cases, job loss mortgage insurance will pay a limited percentage of benefits if you were fired or terminated from your job; however, most policies do not provide such coverage. Furthermore, almost all policies do not extend coverage when you quit or voluntarily leave your job.

Benefits of Job Loss Mortgage Insurance

While coverage for job loss mortgage insurance will vary from policy to policy, most policies will pay your monthly mortgage payments on your primary residence for a specified period of time. In most cases as job loss mortgage insurance policies will pay your monthly mortgage payment for a period of six months to one year.

Also, some job loss mortgage insurance policies provide other funds that may be used to pay essential monthly expenses, such as: utility bills, phone bills and even cable bills. On limited occasions, policies may even extend benefits to pay for food and basic necessity items.

Because job loss mortgage insurance coverage can vary widely, you should make sure that you read your policy and understand the specific details of the coverage that your policy provides. If you have not yet purchased job loss mortgage insurance, then you should make sure that you understand all of the details - before purchasing the policy.

How the Insurance Works


Most of the time, the application process for job loss mortgage insurance is the same as other standard types of insurance policies; you contact your preferred insurer, submit your application for coverage along with any requested documentation or paperwork. The insurance company then reviews your application, and decides to grant or deny you a coverage policy.

Furthermore, most insurance companies will request information about your current job; the insurance company may ask you if you know of any potential layoffs or plans to downsize the company. Although job loss mortgage protection insurance is designed to protect you in these exact types of situations, the insurance company will not provide coverage if it is relatively certain that you will need to use it soon after applying.

Therefore, it is always important to apply for this type of insurance well before you will ever need it. However, as long as you answer the questions of the insurance company accurately and truthfully, then you have nothing to fear or worry about – even if you are laid off a few days after being issued the policy.

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