Toll Brothers Offers Mortgage Protection for Job Loss

[Feb 23, 2009.]

 

Homebuilder Toll Brothers Inc. is offering buyers a mortgage protection plan that will kick in if they lose their job. The mortgage insurance policy is being offered to people who finance their homes through the company’s TBI Mortgage unit.

Toll Brothers is known for its luxury home communities. Not only is it a good time for people who have strong credit and sizable down payments to buy a home because of low interest rates, but this job loss insurance could convince some people to take the plunge into home ownership.

Under the deal, Toll Brothers will purchase Involuntary Unemployment Insurance for home buyers. If a homeowner loses their job within 24 months of purchasing a Toll Brothers home, the mortgage insurance may cover up to six months of principal, interest, homeowner’s insurance, and real estate taxes. The amount that will be paid out is capped at $2,500 a month.

The insurance policy also covers private mortgage insurance and flood insurance. However, association fees and other monthly costs will not be covered.

The policy is also set up to pay out a percentage of a household’s lost income if there are multiple borrowers.  For example if one spouse loses their job and contributes 50% to the household income, the mortgage protection plan would pay 50% of the couple’s housing costs. 

To be eligible for the insurance payouts, homeowners need to have worked at least 30 hours a week and been continuously employed for 12 consecutive weeks before losing their job.

People who are self-employed, independent contractors, in the military, or work for a family member are not eligible for the insurance policy. Also, people who resign voluntarily, engage in misconduct, experience a normal seasonal shut-down, are disabled, hospitalized, or die also won’t qualify for insurance payments.

 

About Author:

Francine L. Huff is a freelance journalist and the author of The 25-Day Money Makeover for Women. She has appeared on a variety of TV and radio shows.