When you purchase your home, consider how you will protect your investment.
Most lenders insist on fire insurance coverage at least equal to the loan amount or the building value, whichever is less. You should also consider a homeowner's policy that combines fire insurance on the building and its contents with personal liability coverage.
Mortgage Life Insurance
When lenders refer to mortgage insurance, they're referring to coverage that's provided by CMHC or MICC for a high ratio mortgage (over 75% of purchase price). Mortgage Life Insurance (MLI) is inexpensive coverage on your life which protects your family or beneficiaries by paying off your outstanding mortgage in the event of your death.
Disability Insurance is important if your mortgage payments depend entirely, or in part,
on your income. Disability insurance provides replacement income if an accident or illness prevents you from working.
Job Loss Mortgage Insurance
Recently, insurance companies have started to offer Job Loss Mortgage Insurance. This insurance covers the mortgage payments in the event that you involuntarily lose your job.