Many of us are guilty of setting up home insurance and then never giving it another thought, just renewing the existing cover each year, but taking time to consider your insurance needs could save you money and even heartache if the worst were to happen.
What insurance should I consider?
As a homeowner, you may need insurance that protects your premises, your possessions and maybe your income to protect your mortgage repayment. To provide comprehensive cover, you should consider the following:
- Buildings: Most mortgage lenders require customers purchasing freehold properties to have buildings insurance in place. If your home is destroyed or damaged, the insurance will cover the cost to rebuild or repair it. The freehold owner is likely to be responsible for arranging building insurance.
- Contents: This insurance specifically covers the items in your home and can also include protection of items outside your home. Loss or damage to items such as laptops, jewelry, TVs and fixtures and fittings can all be protected from incidents such as theft, fire or flood.
- Life insurance: In the event of death, life insurance can be important in helping secure some financial stability as it can be used to help cover mortgage payments.
- Critical illness: If diagnosed with an illness covered by the insurers’ policy, you will receive a lump sum that is tax free. This financial support can be used how you choose, such as for mortgage payments or medical costs.
When buying insurance, it’s important to review realistically your situation and the property you own. Thatched roofs, living on a flood plain, listed buildings etc, may all need specific types of cover so take time to think about what you may need, and avoid the temptation to cut corners to save on monthly premiums; this could prove to be a false economy should the worst happen.
Top tips for buying insurance
When buying insurance, here is some advice we give to all of our clients:
• Shop around for the best price,
• Compare like for like insurances to see which offers the cover best for your situation, • Get the right level of cover so you’re not over-insured (paying too much) or underinsured and not able to cover your costs if loss or damage occurs,
• Pay attention to what isn’t covered,
• Take time to read the policy, including the small print!
• Answer insurers’ questions accurately so you don’t risk voiding your insurance,
• Review insurance on an annual basis, updating any changes in circumstances (which could void a claim) and to get the best price.
Remembering that insurance is there to protect the possessions we’ve invested in so it is important to get it right. Take time to understand what products are available on the market but if you are uncertain of your needs or you’re looking for specialist insurance, then seek guidance from an expert.
Property and insurance purchasing advice from Clayton-Welch Associates
Clayton-Welch Associates is a mortgage broker specialising in offering professional, impartial support to people who need a specific type of mortgage or who have experienced difficulties with mainstream mortgage lenders in the past.
We have also built up the experience needed to offer advice and support for our clients when determining their insurance needs and level of cover.
As a professional and unbiased broker, We offer a comprehensive range of mortgages from over 65 lenders across the market and we provide insurance products based on an analysis of a number of insurer
Your property may be repossessed if you do not keep up repayments on your mortgage.
We rely on referrals for our business, so customer service is the basis for everything we do. We are passionate about finding you the mortgage you need for the property you love, and we accompany you on every step of the way to a successful application.
Find out how we can help you to maintain your mortgage repayments through income protection by contacting Clayton-Welch Associates today.