Protect yourself and your home: shopping for insurance

Buildings and contents insurance are separate types of insurance that are often bundled together and sold alongside a mortgage.

Buildings insurance covers the building itself should it be destroyed or damaged by events like fire or bad weather.

• If you are a freeholder with a mortgage your lender will insist you have buildings insurance.
• If you’re buying a leasehold property, it’s most likely the freehold owner will be responsible for arranging buildings insurance cover.

Don’t just accept the buildings insurance offered by your mortgage broker or lender – shop around to get a good deal.

You’ll need to have the insurance in place when you exchange contracts to confirm the purchase of the property.

This is because you’ll be the legal owner and if there’s a fire, or a problem with the structure of the property, you are responsible.

Contents insurance covers you for loss or damage to the items in your home.

It might also provide some cover for items used outside the home, such as laptops, cameras and phones.

• It’s important to have contents insurance in case of a fire, flood or burglary.
• You don’t need to take out the contents insurance offered by your mortgage broker or lender – shop around to get a good deal.

• Don’t feel pressured to buy life insurance from your lender or mortgage broker – shop around.
• Life insurance is important if you have children, as they will probably need the pay-out after you die to help with the mortgage repayments.

MPPI covers your monthly mortgage payments should you be unable to meet them because of an accident, sickness or unemployment.

Income protection insurance will pay out if you are unable to work due to illness or an accident.

Critical illness insurance offers cover in case you are diagnosed with one of the illnesses specified in the policy.

If you make a successful claim, you’ll be paid a tax-free lump sum.