Job-loss mortgage insurance — which pays all or part of your mortgage payment if you lose your job — can bring peace of mind to homeowners and would-be homebuyers alike.And it’s often available at no cost to homebuyers.

With the unemployment rate hovering around 10%, the highest in more than 25 years, it’s not surprising people are hesitant to buy homes even in a low-rate, low-price market. And many current homeowners no doubt lose sleep worrying how they’ll keep roofs over their heads if they join the ranks of the unemployed.

Once hard to find, job-loss mortgage insurance is now available not only from traditional insurers but from homebuilders, banks and other lenders, real-estate agencies, realty groups, and state and local housing agencies. “The only reason people may not be buying (homes) now is fear of losing their jobs,” says George Akers, the executive vice president of First Mortgage, whose mortgage customers get the company’s Worry-Free Mortgage Protection program free.

In Akers’ experience, mortgage protection plans have become increasingly common in the past year or so.

Policies vary

As with any insurance product, policies vary. For example:

“Job-loss protection plans in real estate are gaining in momentum,” says Dan Forsman, the president and CEO of Prudential Georgia Realty, which began offering the program this year. “It’s a bit early to quantify at this point, but I can tell you our 1,200 agents love having this as an option.”

Forsman says it can differentiate a house from similar ones in the same market, especially in a market in which the greatest activity is in homes that have a lower price. Buyers of these homes — often first-time buyers — tend to gravitate toward the peace of mind offered by these plans the most, he adds.

In the fine print

As with any insurance plan or legal document, read carefully before you sign. Common provisions in the fine print include:

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