Mortgages

Insurance

When taking out a mortgage you may wish to consider life insurance which can also be combined with critical illness cover. Another insurance when purchasing a property is home insurance which includes two policies buildings and contents insurance. Your lender will require you take adequate buildings insurance but contents insurance although not a requirement is well worth considering to safeguard your possessions.

For most people, their home is the largest asset they will ever own. Accordingly, properly insuring your home is of the utmost importance.

Building Insurance

Buildings insurance covers the structure of your home - that is, everything including the kitchen sink. From the roof to the fixtures, if it’s bolted down it falls under buildings insurance cover. For homeowners without a mortgage secured on a property buildings insurance is not a legal requirement, there is no law requiring you to insure your property, but most would agree that the peace of mind alone knowing your home was covered is well worth the premiums.

However, if you have your home under mortgage, the lender will invariably require you take out buildings insurance. Buildings insurance should indemnify against the total destruction of your home, and the amount of compensation should be sufficient for rebuilding. Mortgage lenders will commonly offer to secure buildings insurance for the borrower, but usually not at the best rates. Fortunately, borrowers today have a wealth of options in buildings insurance providers, and many good deals can be found online.

Contents Insurance

While buildings insurance will cover the structure of your home, contents insurance is needed to protect against the loss of your possessions in the home. Contents insurance can cover fire, theft or other damage or loss of your personal property. The furniture, appliances and other goods inside a home can together cost a fortune to replace, and contents insurance is a wise safeguard against such financial loss. To calculate the amount of coverage, one should do a walkabout of the home and tally the rough cost of the contents. Certain very expensive goods, such as jewellery, may require secondary coverage.

Life Insurance

Home insurance does not necessarily stop at your front step, however. In all cases the homeowner himself is the most important asset. A life insurance policy can guard against unforeseen illness and death, which may tragically lead to family insolvency.

Life insurance is especially vital to those homeowners who still have a mortgage. A family struck by a disabling illness or unexpected death can immediately lose income, forcing them to default on payments and face repossession. Life insurance policies come in all manner of coverage, and insured parties should bear in mind their personal limits and risks. Policies are offered for set terms, at the expiry of which a new policy must be negotiated.

Those over forty will likely have to submit to a medical examination, and persons who engage in high-risk behaviours like smoking can expect to pay substantially higher premiums for their coverage. Today there is generally some form of insurance for anything. Underwriters will calculate the premiums and then you can cover yourself for almost any eventuality. Below we have listed a number of different insurance products.

For more information on any of these please click the links below for more information.

Home Insurance
Life Insurance
Medical Insurance