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Insurance
When you take out a mortgage, there area number of products
such as home insurance and MPPI that you have to arrange. So you
should always make sure you have included the cost of cover when
calculating how much you can afford to borrow.
Compulsory & recommended Insurance
Some insurances are compulsory, and others recommended. When it
comes to home insurance, (also known as buildings and contents
insurance), the buildings element is compulsory, but you do not
have to take out contents insurance.
Life Insurance
Contrary to many people's understanding, life insurance is not
a compulsory insurance, but you would be foolish not to arrange
this cover, particularly if you have a partner or children or
other dependents.
Mortgage Payment Protection Insurance
MPPI stands for Mortgage Payment Protection Insurance. It is
not compulsory, but can be invaluable if you lose your job, fall
ill or have an accident, and lose your income. As well as MPPI,
you could consider Income Protection or Critical Illness insurance
for added protection.
Buildings Insurance
When you buy a freehold property funded by a mortgage, you are
obliged to take out building insurance. This cover pays for the
cost of rebuild, should your property be burnt to the ground or
need shoring up if it suffers subsidence, for example. It is also
advisable to insure the contents of your home.
Insurance Pros and Cons
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Having the right insurance gives you peace
of mind. |
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Competition means you can shop around for
the most competitive prices. |
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If you do need to claim, insurance is
invaluable. |
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Insurance does add to your monthly costs. |
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For more information or to discuss your particular
requirement, click here to contact us. |
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