How to Buy a House
Property Insurance
When you have bought your home, you will want to protect it by insuring the building against damage, such as that caused by flooding, fire or subsidence. In any case, the mortgage lender will insist on it.
It is also wise to protect your contents. You can often buy a combined buildings and contents insurance policy.
As well as property insurance, you may also need life insurance, critical illness cover or mortgage payment protection insurance (MPPI) in case you are made redundant or suffer a prolonged absence from work and are not able to meet your mortgage payments. If you have sought mortgage advice, your mortgage advisor will be able to help with this.
If you are buying your home with someone else, you might want to take out life insurance. If one of you dies, this will pay off the mortgage or pay out a lump sum. Make certain that you have the right beneficiary appointed. You should be aware that the FSA now regulates general insurance business so don't be afraid to ask any property insurance, mortgage adviser or broker you see or talk to, whether independent or affiliated, to disclose their status. Ask them to fully explain your options and how they will make money from transacting your business. You might want to find out the approximate cost of property insurance. To obtain a quote for writing a will ask for a quote from our legal services partner.
If you have any questions about mortgages and would like to see how the cost would compare with your current situation, or you have any other query, you should arrange an appointment with a mortgage adviser. He or she will be happy to answer any question you might have about mortgages or insurance – no matter how simple or complicated.
Get a quote for property insurance.
Find out more about how to buy a house in our guide:
How Much Can I Borrow? l Find a Property l Mortgages l Conveyancing Solicitors and Legal costs l Stamp Duty l Home Information Packs l How to Budget l Surveys and Surveyors l Solicitors l Removal Companies l Utilities Companies l Buying a House at Auction l Buying a Repossessed Property
Useful Links:
www.biba.org.uk – website of the British Insurance Brokers Association.
Most useful and most popular pages on this site:
Look for your First Property l Seek First Time Buyer Mortgage Advice l See our Best First Mortgages Comparison Table l Find out about First Time Buyer Mortgages l Find out How to Buy a House l Learn all about The First Time Buyer Mortgage l Shared Ownership