mortgage insurance advice

Insurance Advice

insuring you and your home

It is your responsibility to ensure that all necessary forms of insurance relating to you and your home are in place. As well as Buildings and Contents it is advisable to insure against events that could affect your ability to meet your mortgage payments. It is important that you consider insurance cover such as Mortgage Protection Plans. These cover loss of income due to accident, sickness and unemployment. They can usually be covered collectively or individually and are also known as ASU (Accident, Sickness and Unemployment) policies.

You should also consider the consequences of premature death and critical illness, on yours and your family’s ability to meet mortgage and other financial commitments.

What type of mortgage insurance do i need

Insurance pays out when an unpredictable event causes a loss. You need insurance whenever:

* The law says you must have it - for example, if you drive a car, you must be insured;

* An event could happen to you and you would not be able to afford the loss - for example, if a tile fell from your house and injured someone who then claimed thousands of £s for their lost earnings;

* If an event happened, people who are dependent on you could not bear the loss - for example, if you died and your children needed the financial support you had previously given.

In some cases, the state provides insurance by, for example, paying incapacity benefit if you can’t work due to illness, or bereavement benefits to a widowed husband or wife. But state benefits are low and you usually have to pass a number of tests before qualifying for them.

Often a scheme at work provides life insurance - check the cover is enough for your needs. A scheme at work might also provide some health insurance, such as income protection insurance or private medical insurance.

For Buildings & Contents Insurance, we usually offer products from a limited panel of providers.

For Accident, Sickness and Unemployment insurance, we act as introducers only.

For more information on how we are paid for mortgages please click here