Advice on Insurance when Buying A Home in NI
Insurance pops up in numerous ways in relation to selling and buying property.
This insurance is often arranged by the lender. If you wish to arrange it yourself you can often do so cheaper but your lender may charge an administration fee in connection with the registration of its interest in your policy.
Buildings Insurance should be arranged on the same day as you exchange contracts. If anything happens to the property you are buying after you exchange, but before you complete, you can find yourself liable.
Again this insurance is often arranged by the lender although cheaper alternatives are available for those willing to make the effort.
Contents Insurance should be arranged on the same day as you exchange contracts to make sure that your possessions are covered in transit. No matter how careful you are there is the possibility that something will get broken or lost during your move.
Some lenders will insist on the presence of a life assurance policy before they will lend you money. If you share the responsibility for repaying your mortgage with your partner, or have family that are dependent on your income, then it is something that you may wish to think about.
You can insure your life through a mortgage protection policy which is reducing life insurance for the term of a capital and interest mortgage.
- Sickness: Permanent health insurance can insure you against loss of income through sickness.
- Mortgage Payment Protection: You can insure against unemployment so that your mortgage is paid monthly whilst you are out of work.
- Fire, theft and breakage: This is necessary if you use storage facilities.