INSURANCE “Half-way there” Recap

Are you still with me?  I know…all this talk about insurance is extremely confusing and there are so many different types!  If you’re still confused, rest assured – you’re not alone.  I will do a full recap of all the types of insurance we’ve discussed in an upcoming post.  In the meantime, please try to keep going and please feel free to post any questions under the comments section!  We’re almost done with INSURANCE.  Here is a quick review of the different types of Insurance that we have learned about so far:

MORTGAGE DEFAULT INSURANCE

·         Mandatory for High-Ratio Mortgages

·         Protects the lender if you ever miss payments

·         Cost is added to your mortgage loan amount and, thus, into your mortgage payments

·         CMHC, Genworth, and Canada Guaranty

TITLE INSURANCE

·         Nowadays, often Mandatory for all types of mortgages (depending on the lender)

·         Protects the lender (and you, a bit) from any defects in title

·         Cost is paid for by you at the lawyer/notary public’s office on completion of your house purchase

HOME INSURANCE

·         Fire Insurance is Mandatory for all mortgages

·         Protects the lender and you if anything ever happens to your house (i.e. It goes up in flames)

·         Cost is paid for by you and can be paid monthly

CONTENTS INSURANCE

·         NOT mandatory but is highly recommended

·         Protects you if anything ever happens to the contents of your house

·         Cost is paid for by you and can be paid monthly with the rest of your Home Insurance payment