Step by Step Guides Buying

Looking to get on the property ladder? Broaden your portfolio? This guide covers all the aspects involved in a property purchase, helping you whether you’re a first-time buyer or have some experience in the property market.

Sections:

1. Where to begin
2. Property Hunt
3. Viewing
4. Conveyancing
5. Offer and Application
6. Survey
7. Mortgage Agreed
8. Searches
9. Exchange
10. Insurance
11. Complete
12. Moving

10. Insurance

What types of insurance are available for your new house?

Household Insurance

• Buildings Insurance: covers the property itself, including basic essentials such as kitchens and bathroom fittings and running water. It covers your house in case of fire, flood or subsidence. Make sure that the policy starts on the day you exchange contracts. The value to insure will be based on the "reinstatement" costs section of your survey report.
• Contents Insurance: covers all your possessions inside your home. To work out an estimate to insure, list everything on every room, how much it is worth, and how much would it cost to replace. If you already have one of these, make sure they transfer your cover to your new house on the day you move in.

Mortgage Payment Protection Insurance (MPPI): just in case you become unable to keep up the repayments on your mortgage. This policy pays for your repayments after no more than 60 days as a standard, and it should cover you for at least 12 months after this period. Each medical condition is assessed individually and policies towards self-employed and contract workers are more consistent with their situation.

Life Insurance: most mortgage lenders will insist on you taking one before they agree to a loan, since it secures their investment should you die and thus become unable to finish repaying the loan.

Legal Protection Insurance: insures all the legal aspects of buying a house, including legal action should you need it.

Removals Insurance: in case something goes wrong while moving to your new house. Your contents insurance, if you have one, should cover for this but if it does not, ask for an extension or get a special policy to cover you for the removal. Most of them will not cover you if you handle the removal yourself, or if your removal is delayed for any reason.

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