Owning property can be a huge boost to your happiness, whether it's from the lucrative returns you can get out of investing in real estate or because you've finally got that dream home you've been thinking about.
The flipside of that is that there can be a lot of risks involved in property ownership, particularly while you're still paying off your first home loan. If disaster strikes, whatever form it takes, the resulting strain on your finances could derail your dream of property ownership and make you worse off financially.
That's why it's important invest in a little bit of risk insurance. There are various kinds of insurance that you'll want to look at when buying a home.
Taking out insurance for your property is essential…
There's a variety of types of insurance that go directly toward taking care of a piece of property. Property risk, or title insurance is probably the most significant one of these, protecting its holder from any legal risk that might threaten their ownership of the property.
Whether you're a buyer or own your home there are a number of known and unknown risks that can affect you, from illegal building works to forgery and fraud.
…but it doesn't have to be directly related to property
The insurance you purchase doesn't have to be directly tied into property to to have a big effect on your home loan. If you happen to get ill, or are either temporarily or permanently disabled, all of these things can effect how much you can work or even work at all, resulting in a diminished salary and a constant struggle to meet your repayments.
Life, illness and disability insurance all can help ensure that, no matter what happens, you will be financially covered and able to proceed with your dream of property ownership.
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.