Home insurance for first time buyers

Home insurance for first time buyers

Purchasing your first home is an exciting time, with endless things to consider and buy. Getting insured is essential when you become a homeowner, as life is unpredictable, it is important you are covered for whatever it throws your way.

Knowing what insurance products are available to you and what they cover can help you decide on what is right for you. If you choose to speak to a mortgage adviser during the mortgage application process, they may recommend the below types of insurance based on your circumstances and needs, such as critical illness cover, building and contents cover, home buyers protection, income protection and life insurance.

Critical illness cover

Critical illness cover will provide you with a tax-free lump sum if you are diagnosed with a qualifying illness during the policy term, such as cancer, heart attack or a stroke. This lump sum can help you with day-to-day payments while you go through treatment. This money can be used to replace your income, pay for specialist private treatment or cover mortgage payments. This insurance can be taken out along with life insurance or ‘standalone’.

Buildings and contents cover

When taking out a mortgage, buildings and contents insurance will usually be a condition of your loan as the lender will want to ensure they protect their security. Buildings and contents insurance covers your possessions and belongings and protects your property against things such as leaks, damage to the structure and roof from fires, falling trees and floods. This type of insurance can help cover the costs of repairs and damage.

Home buyers protection insurance

This type of insurance can allow you to claim some of your survey fees, mortgage and lenders fee and conveyancing fees if the purchasing of your new home falls through. It can also protect you if the seller changes their mind or if you have been gazumped, this is when another person has made a higher offer on the house you are in the process of purchasing, resulting in you losing the purchase of the house.

Income protection cover

If you’re unable to work due to illness, injury from an accident or made redundant from your job, you may find it hard to keep up with monthly payments and bills. This type of insurance is designed to replace your income if you go through illness, unemployment or recovering from an accident. You will receive a monthly amount for a fixed period or when you go back to work as this insurance replaces part of lost income you’ve lost due to not being able to work.

Life insurance

Life insurance is designed to give a lump sum if you die within the mortgage term. It allows your family or partner to repay your mortgage and meet other bills and expenses. It is not a requirement when you take out a mortgage, however it may be beneficial to you and your family.

We’re here to help you

To find out more about protection insurance, speak to one of our expert advisers on 07808 645108 or click here to arrange a call back.

For insurance business we offer products from a choice of insurers.