If you’re buying a home, there’s a lot to think about. As you begin making choices from finding the best mortgage rates to choosing your color scheme, it’s good to know you also have choices when it comes to protecting your mortgage and your family’s finances from the unexpected.

While you know you’ll need insurance, it’s important to understand the different types of coverage and the different kinds of policies.

Homeowner’s insurance is not the same as mortgage insurance.

Homeowner’s insurance, also known as property or home insurance, helps protect your home from physical threats like fire, water damage, accidents, and loss of property from theft. It’s required when you have a mortgage.

Mortgage protection insurance helps cover your mortgage payments if you become seriously ill or die unexpectedly. It’s a smart way to secure your future. Knowing the difference between the insurance offered by the banks (declining term insurance) or obtaining your own (personal term insurance) to cover your mortgage liability can save you hundreds if not thousands of dollars over the life of your mortgage.