Protecting your mortgage: insurance to consider when you buy a home
Your home is likely your biggest purchase. For first home buyers in Papakura and South Auckland, here’s the insurance worth thinking about so an illness or injury doesn’t put it at risk.
Your lender will need house insurance in place before settlement. Beyond that, the main covers to consider are life insurance to clear the mortgage if you die, mortgage or income protection if you can’t work, and trauma cover for serious illness. ACC covers accidents only, not illness.
By the Moneyplant Advice Team · Last reviewed October 2026
House insurance
Lenders require house insurance before settlement. Check the sum insured is enough to rebuild, not just the purchase price. We can refer you to a general insurance specialist.
Life insurance
Life insurance pays a lump sum if you die, so your family can clear the mortgage and keep the home. Many policies also pay early if you’re diagnosed with a terminal illness.
Mortgage protection and income protection
Both pay you monthly if illness or injury stops you working. Mortgage protection covers your repayments, while income protection covers a larger share of your income for your other bills too. ACC only covers accidents, so these covers matter most if you get sick.
Trauma cover
Trauma insurance pays a lump sum if you’re diagnosed with a serious condition like cancer, a heart attack or a stroke. It can pay down debt or cover costs while you recover.
Total and permanent disability
TPD cover pays a lump sum if you’re unlikely to ever work again, which can clear the mortgage and support your family long term.
Set it up with your loan
Arranging cover alongside your mortgage means you’re protected from settlement day. You’re usually younger and healthier when you buy, which can make cover easier to get and more affordable. It’s always your choice what you take out, and we’ll explain the options in plain English.
This article is general information only, not personalised financial advice. Talk to us about your situation.
Common questions
Can’t see your question? Get in touch. There’s no such thing as a silly question.
Does my bank require life insurance?
Usually not. Lenders require house insurance, but life, income and trauma cover are your choice. They’re worth considering because they protect your ability to keep the home.
What’s the difference between mortgage protection and income protection?
Mortgage protection pays an amount to cover your mortgage repayments. Income protection pays a share of your income, usually up to 75%, to cover your wider living costs.
Doesn’t ACC cover me?
ACC covers accidents only. It doesn’t pay if you can’t work because of an illness like cancer, heart problems or mental health conditions.
How much life insurance do I need?
A common starting point is enough to clear your mortgage and other debts, plus support for your family. We can work it out with you.
Talk to a Papakura adviser
Leave your details and Kyle will call you back within one working day. No cost and no obligation.
Request a call