If you’ve made it this far during the current recession with your job and your home intact, you truly are one of the fortunate ones. Many people have found themselves with no viable means of support, and been foreclosed and forced to move out of their homes. While you may think that your job is secure and this couldn’t happen to you, make no mistake: anything is possible.
One of the best ways to hedge your bets against job loss is by adding job loss insurance to your homeowners insurance policy. You need to prepare for whatever the future holds. In any economy, your job isn’t guaranteed. In a down economy such as we’ve been in for the past couple of years, jobs disappear and wink out of existence every day.
What does job loss protection in your homeowners insurance policy do for you? First of all, it protects your home in the event that you lose your job. Your mortgage – which is usually the largest single bill in your mailbox each and every month – is taken care of even if you lose your job.
You need to understand first of all, however, what job loss protection insurance does for you. Some You’re only eligible for job loss protection if you find yourself out of a job due to being laid off or are terminated unexpectedly. If you retire, resign or are dismissed due to criminal activity or other misconduct, you’re not eligible for job loss protection.
Self-employed individuals may have specific issues with a job loss rider on their homeowners policy, as well. If you’re self-employed or if you own a larger than 10 percent share of the company you work for, you probably aren’t eligible for the insurance.
In addition, it’s important to know that the job loss protection rider isn’t necessarily immediate. If you lose your job and find one two weeks later, the policy probably won’t kick in. Most job loss insurance riders for homeowners insurance start between 30 and 60 days after you are jobless.
When your job loss protection insurance kicks in, the insurance company will deal directly with your home loan lender. They’ll pay the mortgage payment, so you don’t have to worry about it.
If you think you might be at a risk for losing your job, job loss insurance is a must. Even if you feel relatively secure, the fact remains you can’t predict the future. If adding a job loss insurance rider only adds a small percentage to your homeowners insurance bill, which it usually does, it’s definitely an investment in peace of mind that you and your family can afford.