Before granting you your mortgage loan, the lender will ask you to take out two important insurance policies, to protect his interests, but also yours.
Home (or fire) insurance
You have been living in your house for three years when a fire breaks out while you are at work. When you come back, you can only see the damage. It is obvious that the value of your house after the fire will be significantly lower. The home insurance must allow you to restore your house , but also to insure the property pledged vis-Γ -vis the lender.
Outstanding balance insurance (or death insurance)
If you die, your loved ones will inherit your property but also your debts. Outstanding balance insurance allows them to stay safe from financial worries. If you die before the term of your mortgage loan, this insurance takes care of paying the lender all or part of the outstanding balance of your loan according to the percentage of cover chosen.