If you are buying a home and are getting a mortgage, mortgage lenders insist that you take out buildings insurance. This is to ensure that should something happen to the house, the insurance company will pay out enough the rebuild the house. Buildings insurance typically covers damage caused to the property from events such as subsidence, floods, fires, and vandalism.
Although devastating events like fires and floods are rare, they do happen. You might be surprised at the value of all your possession combined, and how much it would cost if you had to replace them all at once. So it’s a good idea to be prepared, and insure your contents to make sure that should you need to, you could replace them.
You can get insured separately for your building and your contents; however you can also get joint buildings and contents insurance which is often known as home insurance. It’s also worth remembering that often insurances companies will offer a discount depending on the type of security you have in your home – for example having a burglar alarm could help to reduce your premiums. Many policies also offer additional benefits, which may be optional extras, such as access to emergency electricians, plumbers etc.
To find out how much cover you need to protect you property and to make sure you get the best deal possible, it’s worth getting some advice from an IFA or mortgage adviser.
Questions you might like to ask an IFA or mortgage adviser…
- Which types of insurance will my lender insist on?
- Will I get a discount by taking my lender’s insurance policy?
- What other policies do I need to protect my property?