Owning a property will be probably be your biggest financial commitment by far. The importance for adequate insurance is paramount to ensure that if circumstances changed or an unplanned event occurred you do not risk losing your property.

With many different options its often-confusing what type of insurance you would need, your adviser will recommend the correct level of cover based on your needs and circumstances.

Home Insurance (Buildings and Contents)

  • This provides cover for your property and is split into 2 parts
  • Buildings insurance is often a compulsory requirement from the mortgage lender. It is designed to protect the property for loss or damage caused by an event (storm, flooding, fire, water leak etc).
  • Contents insurance is the 2nd element and covers all your possessions inside the property again in the event of loss or damage caused.
  • A policy lasts for a 12-month period and is often renewed on an annual basis with most providers allowing you to spread the cost of the policy over the 12 month period by direct debit.

Critical Illness Cover

  • Often people do not expect or even account for a bout of illness during the mortgage term but what if you were struck down with a serious illness (diagnosis of Cancer, a sudden Heart Attack or Stroke for example)?
  • If this occurred how long would it be before you could return to work, if at all?
  • What consequences could this mean for your family and potential child care issues?
  • A mortgage lender although sympathetic to your situation would still expect the mortgage payments to be met on time.
  • Critical Illness cover is designed to protect your home in the event of you or a partner / child being diagnosed with a critical illness and does this by paying a cash lump sum that can be used to repay the mortgage debt.
  • Cover would usually last for the length of the mortgage term and cover the full cost of the mortgage.
  • Cover is priced based on age, length of cover, amount required and your lifestyle circumstances.

Life Cover

  • If either you or your partner was to die during the mortgage term what type of impact would this have on the remaining party / family?
  • What would be the lasting effects of something so devasting? Would you continue to be able to meet the mortgage payments with a lower income perhaps?
  • The mortgage lender would expect some action to remedy any payment issues which could mean having to sell the property if needed.
  • Life cover would pay out a cash lump sum in the event of death that can be used to repay the mortgage debt.
  • Cover would usually last for the length of the mortgage term and cover the full cost of the mortgage.
  • Cover is priced based on age, length of cover, amount required and your lifestyle circumstances.

Income Protection

  • People often confuse their biggest financially liability as their home when really a person’s ability to work and earn money is by far the biggest liability that is often overlooked. In other words, assume that you earn £25,000 per year and work between the ages of 25 and 65, this income amounts to £1 Million and without adequate cover in place if you were unable to work to due long term sickness or illness how much of an impact would this have?
  • It’s important to check your employer sickness benefits policy often with employers not willing to continue to pay you at a full rate for an extended period of time. Once this stops or is reduced would you have enough income to continue your current lifestyle?
  • An income protection policy is designed to cover a proportion of your income whilst you are unable to work due to sickness or illness.
  • Cover is priced based on age, length of cover, monthly benefit amount required and your lifestyle circumstances.