HOME AND MORTGAGE INSURANCE GUIDE
If you own your own home in the UK and have a mortgage on it then there are several types of insurance policies you should consider.Some you will have to take out because your lender makes it a condition of your mortgage agreement and some you will take out because you feel there is a need to have that particular type of insurance cover. |
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There are two distinct areas of cover that you need to look at. The first is insurance for your home whether it be a house or flat or some other type of building. The second relates to your mortgage and the types of insurance you can take out to make sure it gets paid when you become sick, unemployed or die.
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If you need insurance to protect your mortgage or home then just give us a call.There are many rates and combination deals available and our brokers, who specialise in insurance for property and mortgages, can make sure that they find you the best deal that is right for you. |
HOME INSURANCE
A typical homeowners insurance policy will provide cover for the physical structure of the property as well as their personal possessions within the property.
This is known as Buildings and Contents Insurance and can be purchased together as a single combined or joint Home Insurance Policy or as separate Home Buildings Insurance and House Contents Insurance policies.
Buildings Insurance
You will have to take out compulsory buildings insurance as part of the mortgage agreement with your lender as it will provide cover to rebuild your home should it be destroyed or damaged.
Contents Insurance
It is strongly recommended that you also take out insurance to cover the contents of your home because if you are burgled you could lose everything that you own in your property. It would be very unwise not to take out this type of insurance.
MORTGAGE INSURANCE
There are many different types of insurance you can get to protect your mortgage payments.
Life Insurance
Life Insurance will pay off your mortgage if you die and will be automatically included as a requirement of an endowment mortgage.
Mortgage Payment Protection
Mortgage Payment Protection Insurance will cover your mortgage payments for a year or two if you are unable to work because of sickness or unemployment.
Income Protection
Income Protection Insurance will replace a substantial part of your income for a long period if you cannot work because of illness or disability. It is also know as Permanent Health Insurance.
Critical Illness Insurance
Critical Illness Insurance will pay out a lump sum if you suffer a life threatening illness such as a heart attack or cancer.
Private Health Insurance
This type of insurance actually has nothing to do with your home or your mortgage and is merely included here so that you know what it is and don’t confuse it with any of the other insurance types that are mentioned above
Private Health Insurance can be taken out for you and the rest of your family so that in the event of sickness you can get treatment with a private medical company instead of through the National Health Service.
