Insurance when you buy a property
When you purchase and/or live in a property, there are specific insurances that cover you for various reasons. So, what insurance do you need when you buy a property?
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.
- If you purchase a flat or apartment, 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 buildings insurance. You should arrange your own contents insurance (optional).
- For guidance on how to deal with an insurance claim, 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.
If you are a tenant renting a property, your landlord should take care of your buildings insurance (usually this is paid 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 with the property.
If you are a landlord, you would need buildings insurance for your property and do not have to provide contents insurance for your tenant‘s 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 with the property.
Follow our guide to obtaining building and contents insurance cover:
- Calculate the cost of rebuilding your home for buildings insurance.
- Calculate the cost of replacing your contents for contents insurance.
- Once you have these figures, contact your existing insurer and get a quote (if you haven’t yet received a renewal quote).
- Now you either conduct a Google search using the words “home insurance cover” or for landlords “landlord insurance” or click here to find insurance.
- Choose which one you need (buildings insurance, contents insurance or buildings and insurance).
- The insurer will do the rest.
- If you are struggling to get cover, try searching Google using the words “home insurance declined“.
- Accidental damage on both your buildings and contents insurance 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, the insurer would have paid out.
- Make sure you know how much you are insured for valuable items (click here for guidance). List each one 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.
We hope you found what insurance do you need when you buy a property helpful.
Insurance claim guidance:
If you need to deal with an insurance claim click here.