FTB - Insurances

Clarkey_24

Hi

Sorry Im not sure if this is the correct place to post but here I go. Myself and my boyfriend have just had an offer accepted on a house and we are currently going through the mortgage process. The lady at the bank has advised us of certain insurances we will need such as Home and Contents, Life, Critical Illness. Im just wondering, can anyone advise which insurances we will need and roughly how much we should expect to pay?

Thanks x

GemBlueTopaz1984

Hi Clarkey,

The only one you need to have in place is building insurance (this needs to cover you from exchange of contracts), however your lender may require some of the others as part of their mortgage offer (usually they don't, but do check with them. Be careful when listening to the lady at the bank as they will always advise you to cover yourself against every possible eventuality. Do not automatically take theirs, do your own research and get yourself the best deal. I am in the same position as you and will get building and contents insurance, life cover ( that pays off the outstanding mortgage if me or my OH dies) and an insurance to cover the monthly mortgage payments if me or my OH gets made redundant, has an accident or can't work due to being ill. Their are a million other different insurances out there so think about how you would pay the mortgage in each situation, ie death, redundancy etc. Below are the cost for the insurances I have or will be taking. Although I would advise going to a price comparison website and putting in your details to get an exact costs.

Building & Contents - £11/month Esure found them on money supermarket
Life Insurance (decreasing) - £13 for 2 people. Esure
Mortgage Protection (against redundancy, accident or sickness) - £28 for 2 people. Natwest

As I understand it Critical Illness would be £20 - £30 a month for two people. Estimate from Natwest

Hope this helps x

Clarkey_24

Thats a big help thank you. Can I just ask who you have the cover with for each part? x

bararah

We havequote for combined buildings and contents with Liverpool Victoria which is £256 for the year, we decided to take life insurance/assurance combined with critical life cover to cover the mortgage value if anything happens to us. This is £56 a month to cover both of us. My insurance was less as a younger non smoking female and his was more due to being older/smoker and male. That is with Zurich. Apart from buildings insurance, all of the rest are up to yourselves which you take but you just need to think about how you would pay for mortgage if either of you got sick or even worst case-died.
Hope that helps. It's a minefiled, we didn't trust anyone at first, I though they just all wanted our money!!

Cazza

GemBlueTopaz1984 wrote: »

Building & Contents - £11/month Esure found them on money supermarket
Life Insurance (decreasing) - £13 for 2 people. Esure
Mortgage Protection (against redundancy, accident or sickness) - £28 for 2 people. Natwest

As I understand it Critical Illness would be £20 - £30 a month for two people. Estimate from Natwest

These will vary greatly depending on your postcode (for Buildings and Contents, the amount you are insuring, and your personal circumstances, such as age, health etc.) Don't depend on these figures.

The mortgage company will insist that you have buildings insurance. Personally, as a bare minimum I would also choose to have Life insurance for the mortgage and contents insurance too. I do have other insurances in addition to that myself, but that's really a personal decision based on you finding out exactly what they do for you and what you can afford.

EagerLearner

Clarkey 24 don't forget the life ins changes if you smoke for example - we are paying £32ish instead of £18ish because MrEL indulges in a couple of cigarettes on social occasions. We are going eith Legal and General for Buildings for around £23 but also includes legal and 24 hour emergency attendance.

Fire_Fox

I wouldn't bother with critical illness or mortgage protection unless you have children or you work for the same company! Better to have three months or more salary saved against an event such as this, as you will get some help from the government for living expenses. With a house you should have the option of letting a room for extra income.

EagerLearner

Fire Fox - we must stop bumping into eachother like this I guess I am hanging round this thread more as I'm preparing my brain for being an Owner rather than a Renter