"Insurance may be way down on your list when you first start the process but must not be overlooked. Ensuring you have adequate cover will protect you, your family and your home whether that’s through damage or unforeseeable life changes"
- Helen Rolph - Quotezone
Last year first-time buyers accounted for around 290,000 home sales, but understanding the different must-haves to protect your investment can be a challenge.
The home insurance experts at Quotezone have identified the different protection options first-time buyers need to consider when looking to protect their home, from home and content insurance to mortgage payment protection and even life insurance.
Failing to take out adequate cover could result in difficulty making mortgage repayments and even loss of the home itself. Levels of cover are up to individual buyers but ensuring the cover meets all their needs is essential in protecting the home and quality of life.
Mortgage protection insurance
Mortgage protection insurance will cover your monthly payments if you can’t afford them. This could be because of illness, injury or redundancy. There are certain stipulations around this so it's important to check the policy.
Income protection
This is similar to mortgage protection but covers a proportion of your monthly salary, not just your mortgage repayments. It acts as a financial safety net if you’re unable to work and will likely pay out until you go back to work, retire or the policy expires.
Critical illness cover
Critical illness cover will offer financial support if you or a loved one is diagnosed with a serious illness or injury. The money comes as a lump sum - but check the terms and conditions for details and the illnesses it covers.
Mortgage life insurance
This is designed to protect a repayment mortgage. If the policyholder passes away, the policy would repay the outstanding mortgage, meaning beneficiaries would not have to worry about keeping up the monthly payments.
Buildings insurance
Buildings insurance is normally compulsory. Without it, you will need to foot the bill if something happens to your home while still paying your mortgage. It covers the cost of repairing or rebuilding your property, covering the structure and permanent fittings. Remember to check the small print so you’re clear on what your policy covers.
Contents insurance
Contents insurance covers belongings from loss or damage. You don’t have to have this but it offers peace of mind and covers the cost of replacing or repairing items if they are damaged or stolen. Make sure the coverage is in place for moving day and includes accidental damage, to help protect you from any mishaps.
Helen Rolph, home insurance expert at Quotezone said: “Buying your first home is a daunting experience with an endless checklist of tasks before you finally get the keys.
“Insurance may be way down on your list when you first start the process but must not be overlooked. Ensuring you have adequate cover will protect you, your family and your home whether that’s through damage or unforeseeable life changes.
“There are lots of options - from life insurance and income protection to buildings cover. Some may be compulsory as set out by your mortgage lender so it’s important to consider the options available to you, shop around and seek expert advice. Remember to check any policy carefully to ensure all details are accurate and it covers everything you need it to.
"It's also vital to make sure any coverage is in place before moving day when there is a greater risk of accidents.”
