If you have a home-based business or work from your home, you should consider getting business insurance. Business insurance can protect you against loss or damage to physical property or the loss of your business’ ability to operate and generate income.
Commercial property insurance pays for damage to or loss of your business premises. It also protects against damage, theft, or loss of the business property or inventory.
Public liability insurance protects your business against third-party liability claims. For example, a delivery person who slips and falls at your place of business may be able to make a claim against you for the expenses and the effect of an injury.
Errors and omissions insurance protects service providers against claims made against them because of a mistake they may have made.
Life, health, home and auto insurance are the most common types of insurance products, but there also insurance products available to cover you if you become unable to pay your insurance premiums for reasons such as illness, accident or death.
Mortgage disability insurance makes mortgage payments to your lender for a specified time if you cannot work due to a severe injury or illness.
Mortgage default insurance protects the mortgage lender if you cannot make your mortgage payments. Mortgage default insurance is required by law if your down payment is less than 20 percent of the purchase price of the home.
Credit protection insurance makes the minimum monthly payments on a credit card, loan, line of credit or other debt for a specified time if you cannot work due to severe injury or illness.
You will still be responsible for paying the balance when you recover or after the coverage period ends.
Mortgage life insurance pays the remaining balance on your mortgage to the lender in the event of your death.
As you pay down your mortgage over time, the amount that the insurer will pay you if you die (i.e. the outstanding mortgage balance) is reduced. However, the payments generally remain the same.
Be aware that mortgage life insurance may be subject to claim investigation and often has very strict exclusions relating to pre-existing conditions. Read your policy carefully and make sure you understand what is covered.
Credit balance insurance pays the remaining credit card balance, bank, line of credit or other debt in full, to the lender at the time of your death. Be aware that credit balance insurance may be subject to claim investigation and often has very strict exclusions relating to pre-existing conditions. Read your policy carefully and make sure you understand what is covered.
If you are considering buying mortgage life insurance or credit balance insurance, compare the coverage offered with other options, such as a term life insurance policy.