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Sum Assured?

Scrubs
Scrubs Posts: 26 Forumite
in Insurance & life assurance
Just going through a direct line quote, and its asks me for the 'sum assured'. Am I correct in saying that this should be the full amount (house purchase price) plus interest that I will owe the bank?

Cheers...

Comments

  • dacouch
    dacouch Posts: 21,637 Forumite
    First Anniversary First Post Name Dropper
    It should be the cost of rebuilding the house not the market value.

    Have you recently bought the home?
  • somewhatnew
    somewhatnew Posts: 108 Forumite
    It depends on what the Direct Line quote was for.

    If for life insurance then the sum assured would be the level of insurance you wish to attain.

    If, for example, your mortgage was 200k but the purchase price was 300k the sum you would need insuring would be 200k because thats what you would owe the bank to pay off the house. If you want to go higher than that value then its up to you.
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