When buying your home, there’s more things to think about than just getting a mortgage. And although a mortgage is the very thing you need to actually purchase your house, it’s always good to think about keeping your things and the people closest to you protected too!
But we know it’s hard to know what exactly insurances you do and don’t need, so we’ve put together this article to go over the basics of insurance, to help you make a more informed decision about your protection needs.
Why do I need insurance?
Life is full of its ups and downs, and rarely does anything ever go according to plan. That’s why things like insurance exist- to help protect you against the rollercoaster that is life!
Having insurance can help protect you against any unforeseen circumstances like illnesses, unemployment, or property damage, and knowing exactly what types of protection are out there, and which ones you might legally need, can help you decide what protection you think is right for you.
So, what are the different types of insurance?
Of course, there are many types of insurances out there, ranging from car insurance to life insurance to travel insurance- but only some of these insurances are relevant to the world of mortgages! When speaking to a protection adviser, they can help you sort out:
- Life insurance
- Buildings and contents insurance
- Critical illness cover
- Mover’s Protection
Now that we’ve got that covered, let’s press ahead to find out exactly what each of these insurances mean!
Life Insurance
Life insurance is in place to help your family cover the cost of your mortgage and other expenses in the event of you death. And although it isn’t nice to think about, making sure you have contingencies in place like life insurance can make the different between your family getting to stay in the home that you love, or having to sell the home because living there is no longer something they can afford.
However, although life insurance helps you keep the people you love protected, it isn’t a legal necessity when applying for a mortgage- you can get a mortgage without life insurance.
Buildings and contents insurance
But what is a legal requirement when applying for a mortgage is getting buildings insurance- without it, lenders are unlikely to lend you the money you need to purchase your home.
Buildings insurance is in place to cover the cost of any damage to the infrastructure of your house that could be caused by fires, storms, flooding and other unexpected events. Whereas contents insurance is insurance for things like furniture, TVS, and any other personal belongings.
Critical Illness Cover
Critical illness cover is in place to help support you financially if you’re diagnosed with a long-term illness that means you’re no longer able to work.
Speaking to a protection adviser can help make sense of the insurance you might need so you can be prepared for all of life's unexpected events.