So, You’re Buying A House - What Forms Of Insurance Will You Need?

Posted by Liz Seyi on July 16th, 2022

If we were to ask you to list the really big, hairy, ‘milestone’ events in a typical person’s life - and perhaps yours - it probably wouldn’t take very long for you to write down ‘buying a house’. In fact, for those who do purchase a property, there’s a good chance that it will be the biggest financial commitment they ever make.

It is perhaps surprising, then, that there isn’t more discussion around the insurance policies that one should take out when they reach this key juncture in life.

This is an investment, after all, that you will want to protect. So, let’s take a look at the insurance policies that would help provide that protection if you do buy a house anytime soon.

Buildings insurance

This is one of the two forms of insurance that are typically being referred to when one uses the phrase ‘home insurance’ - the other being contents insurance.

As its name suggests, buildings insurance covers the cost of repairing or rebuilding the structure of a property in the event of it being damaged or destroyed; it’s no wonder, then, that mortgage lenders normally require property buyers to have this type of insurance in place.

Contents insurance

If mortgage providers tend to insist on you having a buildings insurance policy in order to protect their investment, contents insurance is more the kind of thing that you, the property buyer, should insist on getting.

After all, it will recover your belongings in the home that are not part of the building fabric - think such things as your own furniture, jewellery, clothing, and electrical devices.

Such policies normally protect against the risks of theft, fire, and flood, although it’s worth checking whether accidental damage is also covered in the contents insurance plan you’re considering.

Mortgage protection insurance

This is where we start to venture into the world of insurance policies that we specialise in here at QuoteLifeCover. When we say ‘mortgage protection insurance’, we could really be referring to ‘protection insurance’ in general, given that the popular policies in this area can generally be used to cover mortgage payments if needed.

Under this category, you could take out an income protection policy that would provide you with monthly tax-free payments in the event of long-term sickness or disability preventing you from working.

Another popular option is critical illness cover, which would give you a one-off tax-free lump sum if you were to suffer from permanent disability as a consequence of injury, or develop a serious illness such as cancer.

Life insurance is available, too, this type of cover being designed to settle your mortgage balance for the benefit of your loved ones, in the event of you passing away.

Mortgage protection insurance can also take the form of combined policies that bring together the benefits of several of the aforementioned types of cover.

We can’t, of course, dictate what exact policies each and every person who buys a house should take out - the reality is that there will be so many different factors likely to guide your decisions in this regard, including your own budget.

Still, by calling our UK advisers on 0800 316 6917, we can help ensure you get the right help and guidance, so that you can make the best-informed choices for your own household.