Mortgages

Home Insurance Guide

If you are wanting to take out a mortgage there is one type of insurance which is absolutely necessary and that is the one that insures that if the worse comes to the worse and your home is destroyed, the lender will not lose its money in fact no lender will sanction a mortgage without it.

If you own the building and that land that it stands on (freeholder) it is your responsibility to arrange this insurance. You could ask your fees free mortage broker to compare home insurance quotes.

If you are a lease holder, when you live in a block of flats for instance, it is the responsibility of the free holder to arange the cover, make sure that this has been done. Your lender will usualy offer to sell buildings insurance although you may still wish to shop around for a cheaper quote. If you are considering renting out your property you must inform your insurer. This may not be because the policy becomes dearer, rather that the wording on the original may now not apply.

Contents Insurance

Insuring the contents of your home is not of any interest to your lender and this will not be a condition on which they will base the mortgage.

It is, however, highly recommended. You will need to decide if you want a household contents insurance policy which when you make a claim will pay cash or provide new for old instead.

 

You must make sure that you do not under or over estimate the value of your household contents. The usual way to determine the value is to go from room to room and assess what everything is worth. The new for old policy tends to be the most popular as you get an exact replacement or an upgraded version of the original goods lost.

It is worth making special mention of a particular item such as jewellery or antiques. It is advisable to review your policy if a special purchase has been made and have the value added onto the original.

Many insurers will offer lower premiums if for instance you are a member of your local neighbourhood watch and have a burgler alarm installed (BS4737 approved).

All external doors should have a five lever mortice lock fitted (BS53261 standard) and should be at least 44mm thick.

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