Buying your first home is exciting—but it also comes with a list of new responsibilities, including insurance. From homeowners insurance to private mortgage insurance (PMI) to mortgage protection insurance, the options can be confusing.
The truth? Each type of coverage serves a different purpose, and missing the right one could leave your family financially vulnerable.
In this guide, we’ll break down the insurance every homeowner should understand—and explain why mortgage protection insurance is especially important for families and self-employed homeowners.
Protects your house and belongings from damage (fire, theft, storms, liability).
Typically required by your lender.
Covers the property, not your loan.
Required if you put down less than 20%.
Protects the lender, not you.
Ends once you build enough equity.
Covers your mortgage balance or payments if you die, become disabled, or lose income.
Protects your family from foreclosure.
Optional—but the most important.
Many first-time homeowners assume homeowners insurance or PMI has them fully covered. But here’s the reality:
Homeowners insurance protects your house against damage, not your loan.
PMI protects the bank if you stop paying, not your family.
Only mortgage protection insurance ensures your loved ones can keep the house if something happens to you.
If you’re raising kids, mortgage protection ensures they won’t be forced out of their home and school environment if you’re no longer around.
Without employer benefits or group life insurance, self-employed professionals rely solely on their own planning. MPI acts as a private safety net for one of the biggest monthly expenses: the mortgage.
First-time buyers often stretch budgets to secure their dream home. Mortgage protection adds peace of mind, especially in the early years of ownership.
A family in Prescott buys their first home with a $400,000 mortgage.
Without mortgage protection: If the primary earner passes away, the surviving spouse may struggle to cover the monthly payment on their own, risking foreclosure.
With mortgage protection: The policy covers the mortgage, keeping the family secure in their home—no matter what happens.
When you buy a home, multiple insurance policies come into play. Homeowners insurance protects the property. PMI protects the lender. But only mortgage protection insurance protects your family.
For families, self-employed homeowners, and first-time buyers, this coverage ensures that your home remains your safe haven—no matter what life brings.
Buying your first home or reviewing your coverage? At LifeCarrierMatch.com, we help families and self-employed homeowners compare the right policies and protect what matters most. Get your free mortgage protection quote today.
