Home Insurance

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!

 Protect your home from flooding

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:

         paint on carpet for example.

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.

 How to save on your home insurance

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!)

Specialist Title Insurance

Chancel Repair Liability Insurance

This may be worth considering particularly if your new home is near a church.  It is relatively inexpensive. At around £100 for 25 years cover.

Defective Title Insurance

Solicitors identify problems with around 15% of property transactions. Once you own the property, resolving problems can be difficult, stressful and costly. This insurance covers owners and lenders against any future risk when a title is considered a potential problem. This may be due to planning permission, building regulations or future breach of restrictive covenants.

There are two main types available:  'Known Risks' - providing cover for a range of listed potential problems and 'Good Title' - a comprehensive cover against all known and unknown potential problems.  For more details

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Buildings Insurance

Contents Insurance

Mortgage Repayment Insurance

Defective Title Insurance

How to save money on your 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 home insurance 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.