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Home Insurance

As with all insurance policies it is vital that you read all the policy documents to fully understand the cover provided and any exclusions. If you have any doubt seek advice from a broker or insurance provider. This website sets out to provide you with general information only and does not in any way offer or intend to give you advice or recommend any specific insurance company or product.

You will need a policy that provides adequate cover for your needs at an affordable price. Only a fool would not insure their home and contents.

Buildings Insurance

If you need a mortgage to buy your new home you will be required by your lender to have Buildings Insurance to cover the cost of rebuilding your new home. The amount of cover is not the value or what you have paid, but the cost to rebuild. Your mortgage valuation certificate will state the amount of cover you require. This figure should be index-linked to increase with inflation.

It is nearly always cheaper to find your own home insurance rather than use your lender’s insurance, even if your lender requires a payment for checking the policy. There are numerous different policies available; some cover additional things such as storm damage to fencing and emergency accommodation in the event of a fire or flood. As with most insurance policies you can keep premiums to a minimum by increasing the amount of excess, the part of each claim you agree to pay. Some insurers offer no claims discount. Accidental damage is another option to consider for cover against breakages to glazing or sanitary ware, even putting your foot through the ceiling!

Contents Insurance
By far the cheapest way to insure your new home is to take out combined Buildings and Contents insurance with the same insurance provider. Again there are many options available to you.

You can opt for the following at additional cost:

Accidental Damage: Cover against accidental damage to your possessions (paint on carpet for example)
Legal Protection Insurance: Cover to pay for you to pursue a legal problem.
Personal Possessions: Cover for your personal belongings whilst away from the home.
New for Old: You are covered for your goods to be replaced with new identical, equal or equivalent.
Garden Cover: Cover for plants, garden furniture and ornaments.
Cover for the cost of water lost through leakage if you have a water meter.
Cover for loss of the contents of your freezer in the event of a power failure.
Cover for lock replacement if your keys are stolen.

Remember that discounts to Contents Insurance premiums are available if you are less of a risk by having added security and live in a low crime area. Fitting an alarm, having window locks and living in a Neighbourhood Watch area can all give extra discounts. Opting for a higher excess can increase discounts and some providers also give a no claims discount.

Mortgage Insurance:
Mortgage Protection Insurance
This is a Term Insurance that is designed to repay any outstanding mortgage balance in the event of the policyholder’s death during the life of the mortgage term.

Mortgage Payment Protection Insurance
Since 1995 you can no longer claim benefits for mortgage interest payments until after nine months continuous unemployment. Any benefit is means-tested and only half the mortgage interest will be paid. This insurance covers your mortgage payments. However, there are many restrictions including no payments for the first three months and medical exclusions. Anyone considering this type of insurance should very carefully read all the terms and conditions to ensure the cover provided is what you require and offers value for money (monthly benefit against monthly premiums!)