Your home is often your most valuable possession and along with the building itself, the contents are usually of great personal value. Without adequate protection, one simple incident can have a devastating impact.
Home insurance can't stop the incident taking place, but it provides peace of mind that things can be put back the way they were, quickly and with the minimum of fuss.
Buildings insurance covers you for damage to the structure of your home.
Mortgage lenders require that you have buildings insurance in place and that it covers the cost of rebuilding the property and the permanent fixtures and fittings inside it.
The re-build cost will be detailed on your valuation report or survey.
Contents insurance covers you for the contents of your home.
Unlike buildings insurance mortgage lenders do not insist on contents cover however, you should take the necessary precautions to protect yourself.
Check your single item cover in your policy, expensive individual items in your home may need to be added individually to your policy.
Some policies also offer a legal protection element - providing valuable assistance with legal costs. Others offer home assistance packages which can help with emergency repair arrangements and costs.
The cost of your home insurance premium will be influenced by a number of factors including:
Life insurance provides a cash sum for those you leave behind in the event of your death.
It is generally recommended you take out life insurance if you have a mortgage and dependents. This will provide your family with a cash sum allowing them to pay off the mortgage.
The most common form of policies are 'level term' insurance and 'whole of life'.
Level term insurance will pay a tax-free cash sum if you die within the agreed term of the policy.
A 'whole of life' policy differs from a 'level term' policy in that it does not have a restricted policy period, instead it guarantees to pay out whenever you die and is therefore more expensive.
Critical illness cover provides you with a financial cash sum in the event that you are diagnosed with a serious illness or you suffer a severe disability.
This sum could help to pay off your mortgage or provide extra cash to pay for treatment or rehabilitation.
In order to be covered, the illness with which you are diagnosed must be one of those set out within the policy which may stipulate a mandatory survival period.
Income protection cover is designed to provide you with an income should you suffer an accident or illness and be unable to work.
The income from your protection plan could provide you with a monthly payment allowing you to meet your mortgage payments as well as provide extra money for other outgoings.
Many policies will only cover a percentage of your income.
Accident, sickness and redundancy cover provides a monthly payment to help you pay for your mortgage and associated costs in the event of an accident sickness or involuntary unemployment.
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