Insurance when buying a house?

verytricky69

We are in the process of buying a house. the mortgage will be £260k. What insurance will I need and how much should i be expecting to pay?

At the moment I have had a quote form a broker at:
buildings and contents: £46 per month
life insurance (25years) £11pm for me and £13pm for husband
life and critical illness cover £58 for me and £55 for husband.

so if we took out the whole lot it'd be £159pm :eek:

Is this about right? what do other people have and how much are they spending? do we need the CIC? My husband is the main earner as i only do 2 days a week so that I can look after dd so perhaps we should just get CIC for him?

vegasvisitor

It's hard to decide about insurance, when you don't have a clue what your future is I guess.

I'm thinking then that if you are part time, then you could reduce the insurance on yourself, since your husband would still be able to pay everything if anything were to happen, whereas you wouldn't.

I've never had critical illness cover personally, and I think it sounds expensive. I wonder how likely they would be to pay out, and if you would also have trouble with that if either of you were ill. Not sure, but just a thought.

Are you both quite young and generally in good health?


I also have an insurance dilemma of my own that this post has reminded me of. We're due to move in August, we will have a largeish mortgage for a few weeks or so due to not moving same day. We currently own our house outright, but will be 65% mortgaging on the new house temporarily until we hand our house over and get the money of which we will put down a large sum. This will leave us with a mortgage which will be insurable with our life policies through our employers. I'm thinking we might not be able to take out a short term life plan, we also have cover of about £40k from our old mortgage which is paid off but we never cancelled the policy. Are we safe to leave it as it is?

jamesperrett

Buildings and contents seems a little expensive unless there is something special about the property. In another thread, someone with subsidence problems is paying less than you are which seems wrong. Have you tried following the advice on this website about obtaining quotes?

Life insurance is good and I would say that your quote is reasonable given the size of the mortgage although, again, I would try a comparison website or two before taking out a policy.

Whether critical illness cover is worth it depends very much on what other provisions you have. I have always felt that my employment terms are sufficiently generous to make it not worth the money but, if your employer will only give you the statutory minimum sick pay then it may be more worth your while. Again, shop around before committing yourself.

James.