This is a guest post from Huuti, and the author’s views are entirely theirs and may not always reflect the views of Reassured.
Congratulations on buying your first home
Buying your first home is an expensive, complex and sometimes scary process, one that comes with many twists and turns.
It’s no surprise that there are many insurance policies offered to us to make sure that our shiny new homes are completely protected.
However, with all of this being thrown our way, it makes it difficult to separate the necessary from the not so necessary.
This can seem like a major headache. Especially for first-time buyers, who are new to all these pressures.
So what’s what when it comes to insurance?
Buildings insurance covers the overall structure of your property in the event the building is damaged in some way. If you have a leasehold property, like most flats, this is usually the responsibility of the freeholder.
We believe buildings insurance is an important must have to protect your prized asset.
Contents insurance protects personal possessions from damage and loss while they are located within your home.
This is usually a very good idea, and is often bolted onto a home insurance policy, (home and contents cover).
If you own certain items of value, like an expensive bicycle or IT equipment, you might want to specifically name these on your policy.
Both home and contents insurance are important to remember, especially for first-time buyers transitioning from renting to home ownership.
It’s easy to forget that there’s no more landlord to take care of YOUR house when things go wrong!
Mortgage payment protection insurance
Mortgage payment protection insurance (or MPPI) assists you with your monthly mortgage repayments if you were to ever lose your job, preventing you from falling seriously behind.
Obviously, mortgage protection provides reassuring protection and if you can afford it, it could be a very good idea. However, this depends on your personal circumstances, like budget and the nature of your job.
It’s also important to remember that MPPI policies are term-based and therefore will only cover you for a set period of time.
When you become a homeowner taking out a life insurance policy, although not normally compulsory, is a very good idea. Especially if you have dependents who reply on you or have purchased your property with your partner.
Having a policy in place, be it level or decreasing term covers your mortgage and should the worst happen to you the balance would be cleared.
This means your partner, spouse and/or children would be able to remain in the property and not be forced to sell-up and downsize.
Critical illness cover
Critical illness cover pays out a lump sum if you’re ever diagnosed with a specific condition that affects your ability to work, (and therefore to pay back your mortgage).
However, not all conditions are covered and this is not as comprehensive as life insurance as your loved ones would not receive a second payout if you were to pass.
It could be a good idea and more cost-effective for you to take out life insurance with a critical illness element included.
This policy would pay out if you were to pass away or if you were to be come critically ill, (assuming that particular condition is covered by your policy).
All of the above insurance products have their benefits and offer different forms of protection.
No one can predict the future, so it’s important that you give serious consideration to all of the above, to ensure that you and your family have the protection you need.
This is why we have designed Huuti, to help navigate you through your home buying journey, from start to finish.
Our unique understanding of your circumstances help us to make sure that you have exactly what you need to get on the property ladder and then ensure you have sufficient protection of your home.
We’re here to help.