Weeding Through Mortgage Insurance Companies? Helpful Tips

For a homeowner looking into mortgage insurance companies is something that you should put on your list of priorities. Knowing you are protected with mortgage insurance can give you a peace of mind to allow you to find new employment without worrying about the monthly mortgage.

By finding a mortgage insurance company you can be protected from mortgage payments for several months. Choosing between mortgage insurance companies can be a little overwhelming trying to understand all the different policies and numbers involved. Consider these simple tips to help you choose your mortgage insurance company.

Talk with Mortgage Lender

One way to help you find a good mortgage insurance company is to simply ask your mortgage lender. They will know of several companies and be able to point you in the right direction. Your lender might also be able to provide you with mortgage insurance themselves.

Consider the Term Durations

When comparing mortgage insurance companies take a hard look at the duration of mortgage payments that will be paid in the event you lose your job, or are injured. Some companies will pay mortgages for three months. Others will go as far as eight months. The typical average is around six months of mortgage payments. Look at each company's policy to see where they are in the spectrum.

Conditions for Payments

Another large point to consider in shopping through the mortgage insurance companies is what the conditions are that will enable them to start paying your mortgage payments. Some companies will not start paying if you are laid off because of a disability, or a union strike. Some other insurers will not pay in the event you are fired, or you quit. Find out where each insurance company stands in their conditions.

When Payments Start


Some mortgage insurance companies will start paying your mortgage after a few months have passed. They will not automatically begin making your payments. This gives you time to find new employment without them having to pay anything.

However, there are some companies who will either begin paying immediately, or pay you back for any payments you had to make. Research this part of the policy closely as it could mean the difference of draining your emergency fund, or being able to have enough funds for a few months for other bills and food.

Duration of Holding Policy

One more consideration in choosing your mortgage insurance company is how long you have to have had the policy before you are eligible for any benefits. Some companies will not pay if you haven't been with their company for less than six months. Others have a three month buffer.

Make a Decision

Gather all your information about the mortgage insurance companies that you are looking at and choose the one that gives you the best benefits according to their premium charge. Take into account also, your current job conditions to help you make your decision. For example, if there is no danger in losing your job any time soon, a company that will pay benefits after three months is not that important.

Research each policy with these tips as criteria and you will make a good choice that fits your needs.

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