You must check the policy to know the full details of your coverage. Credit property insurance will cancel your indebtedness on the property bought on the insured credit account if that property is destroyed by certain named perils, usually including such events as an accident, theft, flood, or earthquake. Unlike most property insurance, you are not assessed a deductible on credit property insurance. Again, you should review the policy to know the full details of your coverage. Be an informed consumer.
Credit insurance is almost always voluntary .
You probably do not have to buy the credit insurance. If someone phones you and tries to get you to agree to credit insurance, be aware that it is voluntary, and you will be charged for this insurance if you agree to take it. Do not be pressured into agreeing to credit insurance. Think about credit insurance the same way you would think about any other purchase. Be aware it is often much more difficult to cancel credit insurance than to apply for it.