First time buyers – insurance checklist
So you’ve found the perfect home but while you’re looking for the best mortgage to suit you, there are a number of other factors you need to consider which many mortgage providers insist on as a condition of your mortgage. Here’s a breakdown of the main types of insurance you need to consider before buying your first home.
Home insurance
You’ve worked so hard to buy your first home so you’ll want to make sure that both the house and it’s contents are protected. There is a wide variety of policies available out there and it’s worth shopping around for the best house insurance for your circumstances. Many companies such as the Co-op offer discounts of up to 1/3 if you purchase your building and contents insurance together under the same policy and further discounts if you book online. There are a number of comparison websites which can help you seek out the best deals for you. Be aware that cheapest is not always best so make sure you check exactly what is covered by the policy before purchasing anything.
Mortgage Payment Protection
This is an insurance policy to cover your mortgage payments in the event that you are out of work due to sickness, accident or involuntary unemployment. In the current economical climate this may be particularly important however shop around and make sure you read the small print to find out exactly what conditions you would be covered for to avoid an invalid claim.
Life Cover and Critical Illness Cover
Life insurance covers your family should you die or become terminally ill by providing a lump sum payment. Critical illness cover is similar but covers you should you suffer a particular illness or have to undergo a particular surgical procedure as specified in your policy. Both are important and many companies offer both under the same policy.
There are a number of websites available which provide great advice to first time buyers however it is advisable to appoint a financial adviser to help you sort out everything you need to consider when taking that first step onto the property ladder.
