I'm a first time buyer - what homeowner insurance do I need?

I'm a first time buyer - what homeowner insurance do I need?

When you’re making your list of things to do when you’re buying your first home don’t forget about homeowner insurance. That’s because when you take on the responsibility of buying a house it’s a good idea to keep your loved ones and your belongings protected too.

But with so many different types of protection insurance on offer it can be hard to work out which ones you do and don’t need. That’s why we’ve put this article together to explain all about the different types of homeowner insurance to help you decide what to do.

Why do I need insurance?

Life can be unpredictable – we never know what’s around the corner. And that’s why we take out insurance; it offers protection against things like illness, unemployment or property damage.

So being informed about the different types of homeowner insurance available and finding out which you might need to have in place legally can help you work out what protection you’d like to get.

What are the different types of homeowner insurance?

There are all sorts of different types of insurance available but only some are relevant when you’re buying a home. And when you're getting a mortgage and speak to a protection adviser they can help you with:

  • Life insurance
  • Critical illness cover
  • Buildings and contents insurance
  • Mover Protection

But what exactly are they? Read on to find out! 

Life insurance

Life insurance is designed to help your family cover the mortgage and other expenses in the event of your death. While it’s not the most upbeat thing to think about, once you’ve put cover in place you can forget about it and be safe in the knowledge there’s a financial safety net there to protect your family if the worst happens. And it could be the difference between your loved ones being able to stay in the family home and having to sell up because it’s too expensive. Although it’s worth knowing that you don’t legally need to have it in place when you apply for a mortgage.  

Critical illness cover

While critical illness cover will give you a tax-free lump sum if you’re diagnosed with a long-term illness that means you’re not able to work. And you’re free to spend the cash on anything you want.

Buildings and contents insurance

When it comes to buildings insurance it’s a bit different because when you apply for a mortgage, lenders are unlikely to lend to you unless you have a buildings insurance policy in place. So what is buildings insurance? Well it covers the cost of any damage to your home’s structure, like if it’s damaged by fire or flooding.

And contents insurance covers your possessions like furniture and clothes. So if you have a policy in place and for example you were burgled, you could make a claim.

Mover Protection

While with Mover Protection, this safeguards you if your transaction falls down for reasons outside your control. So you can get compensation to cover survey, legal and mortgage arrangement costs up to a set limit if the person you’re buying from withdraws or accepts another offer.

We’re here to help you

It might seem like lots to think about so why not chat it through with an expert protection adviser? Our advisers are here to answer all your questions and to help you make the right choice for you. So get in touch today!

Call us on 01246 862911

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We’re here to help - Providing support and guidance whether you a first time buyer, looking to move home, remortgaging with additional borrowing or just looking to secure another competitive mortgage deal

Bishop & Co Mortgage Services is part of one of the UK's leading award winning mortgage and protection brokers


Why Bishop & Co Mortgage Services stands out from the rest:

• We search thousands of mortgage deals to find the right one for our customers' circumstances and needs

• We can provide face to face and telephone advice for our customers

• We can offer flexible appointments times

• We pride ourselves on our professional Premier Mortgage Service, which does not stop when the mortgage has completed

• We continue to offer an ongoing service to our customers by advising them on family, home and income protection so that they are covered against the unexpected

• We provide a full range of lifestyle and income protection cover to protect you from the unexpected

• We feel that keeping in touch is a good thing to do to ensure our customers are kept abreast of developments in the mortgage world

• We help our customers understand the benefits of paying off their mortgage debt as quickly as possible so they can become financially free to enjoy an early retirement!

Because we play by the book we want to tell you that…

Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1% but a typical fee is £499.

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