Advice on Insurance when Buying A Home in NI
Insuring your home is a necessity. Homeowners will need to protect their building, their contents and indeed, themselves with life insurance. Insurance pops up in numerous ways in relation to selling and buying property. Insurance protects you against risk.
This insurance is often arranged by the lender. If you wish to arrange it yourself you can often do so cheaper but your lender may charge an administration fee in connection with the registration of its interest in your policy.
Buildings Insurance should be arranged on the same day as you exchange contracts. If anything happens to the property you are buying after you exchange, but before you complete, you can find yourself liable.
Buildings insurance covers any loss or damage to the structure and fittings of your home such as:
- Bathrooms suite - sink, bath and shower etc
- Kitchen suite - fitted units
- Fitted carpets
Buildings insurance should also cover you for (ensure in the terms that it does!)
- Fire & flood damage
- Leaking or burst pipes
- Damage caused by vandals and third parties
You should ensure that your buildings insurance covers the full rebuild cost of your property.
Again this insurance is often arranged by the lender although cheaper alternatives are available for those willing to make the effort.
Contents Insurance should be arranged on the same day as you exchange contracts to make sure that your possessions are covered in transit. No matter how careful you are there is the possibility that something will get broken or lost during your move.
Some lenders will insist on the presence of a life assurance policy before they will lend you money. If you share the responsibility for repaying your mortgage with your partner, or have family that are dependent on your income, then it is something that you may wish to think about.
You can insure your life through a mortgage protection policy which is reducing life insurance for the term of a capital and interest mortgage.
- Sickness: Permanent health insurance can insure you against loss of income through sickness.
- Mortgage Protection Insurance: You can insure against unemployment so that your mortgage is paid monthly whilst you are out of work. This is different to the infamous PPI that was mass missold.
- Fire, theft and breakage: This is necessary if you use storage facilities.