Insurance coverage for same-sex homebuyers is becoming increasingly accessible. (Although not necessarily more affordable — a trend that’s occurring, regardless of the person.) Regardless, insurance is something everyone needs, and of course, some coverages are mandatory (for instance auto insurance and health insurance). The good news is, inclusion is increasing expanding to many areas of life. So, it’s important to offset or minimize risk where and when you can. It’s just good practice to help prevent financial problems, straits, or outright ruin. Whether it’s medical or property, costs can quickly add up and insurance is a smart resource to have in such situations.
Top Reasons Same-Sex Couples Need Insurance Coverage
Regardless of sexual orientation, everyone needs insurance coverage. Basics include auto, health, life, dental, and home or renter’s insurance. Simply put, just one incident can easily cause severe financial strain. That’s what insurance does, by the way. It’s a transfer of risk. When you have an insurance policy, it is there to handle the mess and keep you from incurring outrageous expenses.
“Homeowners’ (or hazard) insurance is sold to homeowners when they buy a house. It insures the house against fire, flood, and other acts of destruction. It used to be difficult for unmarried couples to buy homeowners’ insurance together, but this is no longer true. Many companies now write policies for unmarried couples at the same rates offered to married couples.” —Nolo.com
When you purchase a home as a couple, you’ll need insurance to write the mortgage loan. And, if you have a down payment of less than 20 percent, you’ll pay PMI or private mortgage insurance. This is a policy which makes the monthly home loan payment, in the event you are unable. But, it’s not really for you — it’s for the lender’s protection. However, it’s something you’ll have to pay. (That’s the downside of some insurance products — they protect others and not necessarily you.)
Insurance Coverage Same-Sex Homebuyers Need Most
Now, if you are in the market to buy a home, you’ll need to make smart moves along the way. Put another way, there’s a whole heap of big expenses that come with owning a home. For instance, if inclement weather or a tropical system damages the roof, you’ll definitely need to repair or replace it. Since these two scenarios can reach into tens of thousands of dollars, you’ll need adequate protection in-place. So, let’s take a look at the types of insurance coverage same-sex homebuyers need most:
- Life insurance. Even if you have a pension, 401(k) or 403(b), that money might not be transferable if something happens to you. Generally, these plans all have different rules about beneficiaries and payouts. So, spend a small monthly fee, equal to a delivery pizza and get 15- to 20-year level term life that equals 10 times your annual income. It’s really inexpensive and becoming more accessible, even to those with some previous or current medical issues. Stay away from whole and universal life policies since they’re so much more expensive and have horrible terms and conditions.
- Title insurance. This is a “must-have” policy because it covers you in the event something shows up on the next title search when you go to sell the property you’re buying now. Sure, there’s always a title search conducted but that doesn’t mean it’s 100 percent foolproof.
- Health insurance. Okay, so everyone knows the Affordable Care Act requires everyone in the country to buy health insurance. But, that doesn’t mean it’s readily accessible to everyone. Look into different coverages and find one or more policies which work for you.
- Long-term care insurance. This is something to look into once you turn 60 to 62 years of age. Statistically, it’s at that time the risk of needing long-term care goes up from practically nothing to a real chance.
If you’re going to sell your home in the near future and buy a new house, please don’t hesitate to phone me at 407-616-7286, I’ll be happy to speak with you.