Mortgages Advice - Insurances
Buildings Insurances
Sometimes it is a condition of the mortgage that the buildings insurance is taken out with the lender. Please refer to the illustration enclosed. It is your responsibility to ensure the payments are maintained to ensure continuity of cover. The sum insured must be based upon an estimate of current rebuilding costs and will be increased in line with the House Rebuilding Cost Index. The cover must be in force at exchange of contracts in England and Wales or from acceptance of missives in Scotland.
If you wish to arrange your own insurance the lender may impose a charge for administration of the insurance details.
Home Contents Insurance
I recommend that you arrange an adequate amount of contents cover, to offer protection to any fixtures, fittings and all your personal possessions.
It is your responsibility to ensure you have adequate insurance cover, and the premiums are maintained to offer continuity of cover.
Mortgage Repayment Protection
If you fall behind with your mortgage payments due to accident, sickness or unemployment and you are unable to bring your account up to date, you could eventually lose your home. State benefits have been greatly reduced in recent years. If you do not have any other means to repay the mortgage I recommend you take out insurance to offer protection in these circumstances.