What insurance do I need when I purchase a property

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What insurance do I need when I purchase a property

When you purchase and/or live in a property, there are specific insurances that cover you for various reasons.

If you have a mortgage, you may need some form of life insurance with a mortgage protection element.  If your property is in a flood prone area, you may need flood insurance or if your property has suffered some form of subsidence, you will need subsidence insurance for your home.  In any event, if you own a property, you will need to have buildings insurance.

Follow our guide:

Buildings and contents insurance

  • Buildings insurance protects the structure and the re-build cost of your home.
  • Contents insurance covers your contents only.
  • If you purchase a flat, your freeholder should arrange your buildings insurance.  Ask the freeholder for a copy of the policy.  You should arrange your own contents insurance (optional).
  • If you purchase a house, you need to arrange both buildings and contents insurance if you require both to be covered.
  • If you need to make a claim on your building insurance click here.

Life insurance with a mortgage protection element (optional)

  • This insurance pays your mortgage in full in the event of your death.
  • This kind of insurance ensures that your family do not struggle to pay the mortgage and/or lose the family home after you have gone.
  • If looking for this kind of insurance, shop around.  For guidance, find a broker.

Mortgage Protection Insurance (optional)

Also known as MPP, it covers your mortgage payments if you are unable to work due to illness, accident or unemployment.  You pay a monthly fee and MPPI will pay you an amount each month for a period of 12 or 24 months.

Subsidence Insurance

If your property has suffered subsidence in the past you may need to arrange subsidence insurance.  If you need to report a subsidence

Flood Insurance

If your property has suffered from flooding in the past you may need to arrange flood insurance.

Tenant

If you are tenant renting a property, your landlord should take care of your buildings insurance (you would however pay it through a service charge along with your neighbours). You would then be responsible for taking care of your own contents insurance.  You need to ask your landlord for a copy of the buildings insurance policy as you may need this if you suffer any incidents in the property.

Landlord

If you are a landlord, you would need buildings insurance for your property and do not have to provide contents insurance for your tenants belongings.  You can however cover your own fixtures and fittings with landlord insurance.  You need to provide your tenant with a copy of the buildings insurance policy as they may need this if they suffer any incidents in the property.

Follow our guide to obtaining building and contents insurance cover:

  1. Calculate the cost of re-building your home for buildings insurance.
  2. Calculate the cost of replacing your contents for contents insurance.
  3. Once you have these figures, contact your existing insurer and get a quote (if you haven’t yet received a renewal quote).
  4. Now search google using the words “home insurance cover” or for landlords “landlord insurance“.
  5. Choose which one you need (buildings and contents or buildings or contents).
  6. The insurer will do the rest.
  7. If you are struggling to get cover try searching Google using the words “home insurance declined“.

Tips:

  • Accidental damage on both your buildings and contents policies really comes in handy. One of our members had an issue with their chimney and if they had selected accidental damage on their buildings insurance, they would have been paid out.
  • Make sure you know how much you are insured for valuable items.  List each one out and whenever you make a big purchase, let your insurer know.
  • If calling insurers verbally, haggle, haggle haggle!
  • Make sure you get a copy of the buildings insurance policy from the freeholder if you purchase a flat/apartment.
  • How to claim following storm damage.
  • How to claim following an escape of water.
  • How to claim on my insurance.
  • How to claim following a burglary.

Insurance claim guidance:

If you need to deal with an insurance claim click here.

If you need to report any of the following issues to an insurer click below:

Escape of Water

Fire

Burglary