Managing the What Ifs as a Homeowner

If you are on the hunt for a family property, chances are you are already worried about saving for your mortgage. Obviously, you need to create a saving strategy to make sure you can pay the deposit for your home. 

Most families choose to save for a few years before they consider buying. Therefore, it is understandable that finding the right mortgage will be on your mind for a long time. 

However, you’d be surprised to know that the mortgage is only the tip of the iceberg. There are many more situations you need to consider as a potential homeowner, and it is essential to plan ahead and gain a full understanding of what there is to come. Nobody expects you to have already a solution for every situation you may face after buying your first home. But you need to gain an overview of which experts can help you navigate the troubled waters of homeownership. 

What happens to my mortgage if I pass away?

It is not something you may want to think about. However, your real estate investment needs to be protected against the eventuality of your unexpected passing. The last thing you want is to cause your family more distress. That is why it is crucial for future homeowners to research life insurance. Indeed, life insurance covers are designed to protect your loved ones in the event of your death. The cover will ensure they are able to stay living in the home if anything unexpected happens to you. Your life insurance can help pay off the mortgage of the property. 

It is also worth considering writing a will with an estate lawyer to determine the beneficiary of the property. For example, if you want to make sure a relative receives the property after your passing, a will can provide peace of mind. 

What happens to my home in the event of damages?

Your home insurance acts as a protective shield to lessen some of the unexpected costs of home damages. However, insurance covers differ widely and do not all offer the same protection. It is worth researching the different protection levels for the existing risks in your area. For example, if you live in a region prone to flooding, it can be helpful to seek insurance cover with additional flood protection — it may require paying extra. 

Additionally, you also need to consider the small print. Does your home insurance cover DIY damages inside the property? Suppose you accidentally drill through the wall and hit your plumbing pipes. Will you need to pay out of your pocket to get it fixed? Not all covers recognize DIY projects, which means that you could be faced with high costs. On the other hand, if a contractor causes damage inside your home, damages are more likely to be refunded through their liability insurance and your home insurance. 

Another frequent issue that can lead to increased costs is burglary. It is worth asking your insurer about their burglary replacement or refund policies, as they may only pay for the lost items if you meet specific security requirements such as CCTV or a type of lock on the door. 

Protecting your real estate investment in the long term means one thing: You have to consider the many “what if” scenarios. What if this or that happened? As a homeowner, you do not need to have an answer ready. But you need to take preventive measures to protect your home and your families from unexpected what ifs.