Getting insurance

Your home is going to be your biggest asset, and your mortgage your biggest commitment, its vital that you protect yourself as much as possible once you have gain both of these.
So which products should you be looking to take out? here is a quick guide.

Building Insurance

If you have a mortgage, this will be a compulsory product. While the lender retain an interest in your property, they will expect you to protect it.

You do not need to insure the value of your home, because if something ever did happen to your home, such a fire or an earth quake destroyed it, your land will still be there.

You need to cover the rebuilding cost, i.e what it will cost to rebuild your house back to its former condition. The valuation report carried out during your mortgage application will tell you this.

Some insurers will work out the sum themselves and guarantee to cover for any claim.

Content Insurance

This type of insurance will cover everything in your home that is not covered by your buildings policy. These will include carpets, curtains, as well as static possessions.

Virtually all contents cover nowadays will be based on a new-for-old policy . Which means any items that has been lost or irreparably damaged, upon your claim, will be replaced based on its current value, and not by its worth prior to the claim.

Mortgage Payment Protection Insurance (MPPI)

MPPI is designed to proctect you against many shortcomings, such as illness, injury or even redundancy which would force you to give up work. MPPI will pay your mortgage for you during such times.

Most policies will pay out for about 12 months, although these covers can be extended for a longer period.

MPPI is priced as X-per-£100 of your monthly payments. So if the price was £4-per-£100 and your mortgage was £700 a month, your monthly premium would be £28.

Life and Critical Illness Insurance

Life insurance, or assurance, will be suited  for people with dependants, such as a young family or an old spouse.

Your death could be tramatic enough without your family fearing they will lose their home also. As long a you keep up with payments and you pass away within your cover period, then your estate will get a payout.

Its always worth considering taking out cover earlier as the younger and healthy you are, the lower the premium.

Critical Illness insurance works in the same way as life insurance, but with one different, you will get a pay out even if you don’t die.

This type of insurance will cover you for very serious illnesses or injuries which will result in you unable to work again.