Protecting your home means protecting more than just the physical structure itself. All homeowners know to insure against hurricanes, fires and earthquakes, for instance. We know to insure against break ins and get liability coverage in case someone sues us, but what good does that do if we’re foreclosed upon?

Mortgage insurance, also known as home mortgage insurance or mortgage guaranty, is a policy that will compensate lenders and investors should we default on a mortgage loan.

A lot of owners will be presented with this and say “So what, I don’t plan on defaulting.” In a perfect world, home mortgage insurance wouldn’t be necessary, but in a perfect world, neither would home contents insurance coverage or any other form of insurance, for that matter.

Mortgage insurance means that should you get sick, should you lose your job, should you take a pay cut, get demoted, or for any reason at all be unable to make your mortgage payments, you at least won’t wind up owing your creditors anything.

How many people do you know, just off the top of your head, who are plagued with debt that they’ll never be able to get away from? If you’ve reached middle age without owing anyone more money than you’ll ever be able to pay off, then you’re one of the lucky few, and you should probably try to keep it that way.

Mortgage insurance is not only a way to protect your own financial future, it’s also a way to protect your family. If something should happen, if you should pass on or be injured in a way that leaves you unable to work and make your mortgage payments, then your family is left wondering what they’re going to do about the money you owe.

We don’t like to think about what would happen if we couldn’t make our mortgage payments, but that’s what insurance is for: to protect us against those things we don’t want to think about. Life insurance, health insurance, home owner’s insurance, it’s not there to protect is in the best of times, it’s there to make sure that the hard times aren’t so hard, and that’s why it’s absolutely necessary, it simply lends us peace of mind.

Full coverage means covering not only the physical structure of the home and the contents therein, but also protecting ourselves in relation to the home. That’s where home mortgage coverage comes in.