What is mortgage insurance for job loss?


Mortgage insurance for job loss will cover the whole or part of the mortgage payment in case a borrower gets laid off. Mortgage unemployment insurance has recently become more popular even though it has existed for quite a while.

How does mortgage insurance for job loss works?

Job loss mortgage insurance will make part or all of the mortgage payment if the borrower loses their job or becomes disabled. Job loss insurance policies will vary greatly - some will make only part of your mortgage payment, especially if it is large. Others will cover all PITI payment (principal, interest, tax and insurance).

If borrowers know they will be unemployed soon, they should also know that they will not receive any benefits from job loss mortgage insurance company if unemployment occurs within the first six months. The unemployment mortgage insurance company may even refund borrowers' premiums if that occurs within the first months of signing the policy.

The maximum amount of a mortgage insurance for job loss will usually be limited to 12 monthly mortgage payments.

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