Jamie Lennox - Mortgage Adviser - Dimora Marketing

What Insurances do I need when buying a house in the UK : The complete guide for 2023

What insurances do I need when buying a house

What insurances do I need when buying a house?

Wondering what insurances do I need when buying a house often leaves many home buyers confused. In this blog, we will be covering what is available to potential homeowners and what should be considered when taking out such a large financial commitment.

Protect Your Home and yourself with the right Insurance coverage

Buying a house is a significant investment, and it’s crucial to protect your investment from unforeseen events. In the UK, there are several insurances you need to consider when buying a house. In this comprehensive guide, we’ll discuss the insurances you need when buying a house in the UK and what each of them covers.

Buildings Insurance – Protect Your Home from Damage and Loss

Buildings insurance is a type of insurance that covers the structure of your home from damages and losses due to natural disasters, fire, theft, and other unforeseen events. It’s often a condition for most mortgage lenders that this has to be in place, and it typically covers the following:

  • Structural damage: It covers the cost of repairing or rebuilding your home if it’s damaged due to a covered peril.
  • Fixtures and fittings: It covers the cost of repairing or replacing your fixed items like kitchen units, bathroom fittings, and built-in wardrobes.
  • Liability coverage: It covers the cost of legal fees and damages if you’re found liable for someone’s injuries or property damage.

Contents Insurance – Protect Your Personal Belongings

Contents insurance is a type of insurance that covers your personal belongings in case of theft, fire, and other unforeseen events. It’s not a legal requirement, but it’s highly recommended to protect your personal belongings. Contents insurance typically covers the following:

  • Personal property coverage: It covers the cost of replacing your personal belongings if they’re stolen or damaged.
  • Liability coverage: It covers the cost of legal fees and damages if you’re found liable for someone’s injuries or property damage.

 Protecting Your Finances and Loved Ones with the Right Insurance Coverage

Life is unpredictable, and unfortunate events like illness or death can have a significant impact on our lives and our loved ones. That’s why it’s crucial to have the right insurance coverage to protect your finances and your family. In the UK, three essential types of insurance are life insurance, critical illness insurance, and income protection. In this blog post, we’ll explain what each insurance type is and how they can help protect you and your loved ones.

Life insurance – Protection your families finances

Life insurance is a type of insurance that provides financial protection for your loved ones in case of your untimely death. It’s designed to ensure that your family has the necessary financial support to cover expenses like mortgages, household bills, and other living costs.

Term life insurance covers you for a specific term, typically ranging from 10 to 30 years. If you pass away during the term, your beneficiaries will receive a lump sum payment. If you outlive the term, the policy expires, and you won’t receive any benefits.

Critical illness

Critical illness insurance is a type of insurance that provides a lump sum payment if you’re diagnosed with a critical illness. It’s designed to help cover the costs of treatment, care, and other expenses that arise due to a critical illness. The covered critical illnesses can vary depending on the policy, but most policies cover conditions like cancer, heart attack, and stroke.

The lump sum payment from critical illness insurance can be used for anything, from medical expenses to paying off debt or covering living costs while you’re unable to work. It’s important to note that critical illness insurance only pays out if you’re diagnosed with a covered critical illness during the policy term.

Income protection

Income protection insurance is a type of insurance that provides you with a regular income if you’re unable to work due to illness or injury. It’s designed to help cover your living expenses while you’re unable to work, so you can focus on your recovery without worrying about financial stress.

Income protection insurance typically covers up to 65% of your income, and the payments continue until you’re able to return to work or until the end of the policy term. It’s important to note that income protection insurance only pays out if you’re unable to work due to an illness or injury, not for redundancy or other reasons.

Summary

Overall there is a number of different insurances to consider when buying a property. Although in an ideal world, everyone would have every insurance available under the sun, in the real world only Buildings insurance is a condition that it has to be in place to get the mortgage with the others being highly recommended.

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