A mortgage is often the biggest financial commitment that someone will make in their life so it can be concerning when we hear of people that haven’t protected themselves and their home. Despite our best intentions, life can often throw a curveball and we need a little help.
There are many different protections that you can utilise when it comes to your mortgage and here at Love Mortgages, we offer a variety of different types. Here are the ways you can protect yourself and your property if your circumstances sadly change.
Buildings Insurance
If you own a home, you usually need two policies as standard – buildings insurance and contents insurance. If you require a mortgage, a lender will insist that you take out buildings cover.
This ensures that if anything happens to the structure of your home (your walls, roof or windows) or even permanent fixtures within such as your bathroom, you are covered. You are also covered if you suffer damage to your home from flooding, fire, theft or even something like a falling tree.
It is important to look at your policy as some policies offer additional cover for things that another building insurance provider may not. Your cover will need to cover the cost of rebuilding your home, and your advisor will be able to guide you to ensure you're covered for all eventualities.
Contents Insurance
This covers damage to the possessions of your home. It usually covers damage from fire or flooding, theft and a few other things. Depending on your policy, it may also cover accidental damage to items, cost of accommodation and storage if you can’t live in it, replacement keys and maybe even loss of food if a freezer breaks down. You will need to check your policy to see what you are covered for.
Some policies offer optional extras for a small additional price such as covering items away from home. It is important that you choose the right policy for you, and the team at Love Mortgages can answer any questions you may have on this.
Critical Illness Cover
A critical illness is an illness that affects your day-to-day life dramatically. This may be certain types of cancer, heart attacks, strokes or the loss of a limb. Illnesses covered vary between insurers and pre-existing conditions tend to be excluded. If you are taken ill and are struggling to pay your mortgage, this cover pays out a cash lump sum.
Income Protection
This covers you in the event of sickness or an accident which prevents you from being able to work. Long-term pays out until your retirement, death or return to work whereas short-term pays out for a set period of time.
It doesn’t usually pay out if you suffer redundancy so it is important to bear this in mind. Pay-outs will usually be based on a percentage of your earnings and these payments are tax-free.
Landlords Insurance
If you own a property but are renting it out, then landlord's insurance is a must. It covers you should you suffer a financial loss connected to your rental property. It can also insure any contents that belong to you inside if you choose to.
It does not cover the personal property of the tenants but does cover a variety of standard perils including fire, floods and malicious damage. There are also optional extras that you can choose to add to your policy.
Life Insurance
If you own a property with your family, then life insurance is a must. In the event of the key earner’s death, the payout can be used to help pay off your mortgage. The amount of cover may vary and premiums may be reviewed regularly. It is important that you have enough coverage to cover the costs of the mortgage as well as things associated with the death such as a funeral and debt repayment.
Mortgage Payment Protection
Should you be unable to work due to an accident, sickness or unemployment, this insurance covers your mortgage payments. It will pay you a set amount each month for a specific period of time – usually 12 or 24 months. It only pays out for a limited period so it isn’t always the ideal choice for some, however seek financial advice from at any time if you have any concerns or queries on this protection.
Private Medical Insurance
This is health insurance that pays for private treatment should you fall ill. A standard policy covers essential treatments which include surgery, consultations, nursing and hospital care. It however doesn’t cover some conditions. There are two types of plans – a fully underwritten policy which requires you to disclose your full medical history or a moratorium which excludes certain pre-existing conditions.
This is not an essential insurance product and could sometimes come below the priority of many of the above when it comes to choosing adequate protection. However, if you have the funds to do so, it may be worthwhile insurance to have based on your individual circumstances.
Love Mortgages is a team of mortgage and protection advisors with Customer Service at the heart of how we approach helping our clients. We are based in Chester and Flintshire but we also offer our services nationally. We are happy to help you find the right cover at the right price for you.
Get in touch today for a free, no-obligation chat on how we can help and support you to stay protected from those surprises life can throw. We look forward to hearing from you and advising you soon!
Get in touch today for a free, no-obligation chat on how we can help and support you to stay protected from those surprises life can throw. We look forward to hearing from you and advising you soon!