Whether you are a first time buyer, or are thinking of moving home, you will need to know the essential types of insurance protection that homeowners require.

Lenders are required by law to ensure that Mortgage protection cover is in place, in most cases, when you draw down your mortgage. 

Home insurance is not a legal requirement, but lenders will usually require you to have buildings cover, at least, in place as part of their lending requirements.

MortgageOne is part of LHK Group – a long established, family owned group of companies who have been providing insurance and financial solutions to clients for almost 90 years. We are happy to find you the best insurance cover for your situation at the most affordable price.

What types of insurance should a homeowner have?

There are two key types of insurance that a homeowner should have:

  • Home insurance
  • Mortgage protection insurance

Home insurance

Home insurance offers protection for your home and its contents. Home insurance can consist of buildings insurance and contents insurance which you can purchase separately or as a combined homeowners insurance policy.

Buildings insurance offers protection for the overall structure of your home including the roof, walls, windows and door, as well as permanent fixtures and fittings such as bathroom sanitaryware and fitted kitchen units. 

Contents insurance includes cover for your personal possessions such as furniture, electrical items, and possessions.

Home insurance usually includes an element of liability cover which offers protection if someone is injured whilst in your home or its immediate environs.

Home insurance offers essential financial protection where your home and/or its contents are damaged by weather, water leaks, fire, and theft for example. Without home insurance, you may have to pay significant, unexpected repair costs yourself if your home is damaged.

Mortgage protection insurance

Mortgage protection insurance is a form of financial protection that will pay off the remaining balance of your mortgage if you die before the end of your mortgage term. Mortgage protection is usually reducing term cover where the protection offered by the policy reduces in line with your outstanding mortgage balance.

If you have a joint mortgage, then you would also need joint mortgage protection insurance which will pay off the mortgage should either you or your spouse die before the mortgage is cleared.

By law you are required to have mortgage protection in place on taking out a mortgage, unless your age or health prevent you from doing so or you already have adequate life insurance in place.

You may also be able to purchase serious illness cover with your mortgage protection insurance. Serious illness cover purchased as part of a mortgage protection policy will pay out if you are diagnosed with one of the insurers list of specified serious illness. 

You may purchase mortgage protection from your mortgage lender, but it is worth shopping around as quotes can vary considerably.

Get expert advice on your insurance

Fill in your details or call us and you can get a free consultation with a Qualified Financial advisor on your needs around mortgage protection and home insurance. 

They can find the right plan for you that works with your needs and budget so that you can get peace of mind as a homeowner.