Home Insurance Forum

Mar. 7, 2007

Does mortgage insurance cover cases where the homeowner cannot pay the mortgage because of injury? If it might, how does one find out to what extent the insurance applies?

Gary, Maryland

Dear Gary,

Mortgage protection insurance will pay off your mortgage only in the case of your death. And that's all it pays for, so as you pay down your mortgage, the face value of this type of insurance decreases. Look at our story on how Mortgage protection insurance offers limited benefits.

Another option is credit insurance, which is designed to pay your bills in case you are disabled or die, but, like mortgage insurance, the benefits are limited. A third option is disability insurance, which may be the best choice for you. If you were unable to work for an extended period of time because of an injury or illness, disability insurance would pay you monthly benefits. For more details, take a look at our story on How disability insurance works.

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