Buildings insurance & MPPI

sindakit

I'm currently awaiting my Mortgage approval for buying my first home. I went through first Mortgages as a broker for advice and they were perfectly fine, but they are recommending I take Income protection and building insurance.

Now I will likely take both for peace of mind and protection, but should I take their recommendations? Should I shop around - this will mean pro-longing finding an insurer until after the Mortgage is approved so as to not do any credit searches prior to this.

Is there any advice people have in regards to MPPI & insurance? There wasn't much in the guides relating to this.

ap1985

I find this a bit off...i took out Life insurance after I received my mortgage offer but there was no push from my broker for this. I haven't even taken out buildings insurance yet but endeavour to do so just before completion.

Surrey_EA

Having buildings insurance in place for the property you are buying will almost certainly be a condition of your mortgage offer. The buildings insurance will need to begin from the moment you exchange contracts. Shopping around a bit is normally a wise idea, there are plenty of comparison websites to make life easier.

Income protection cover is more for you decide whether you wish to have that peace of mind, again a little shopping around to compare differing levels of cover and monthly cost is a wise idea.

Surrey_EA

ap1985 wrote: »

I find this a bit off...i took out Life insurance after I received my mortgage offer but there was no push from my broker for this. I haven't even taken out buildings insurance yet but endeavour to do so just before completion.

As I understand it, the reason it is advisable to begin your buildings insurance from the point of exchange is that you are entering in to a contract to purchase the title of a specific property, and you need to fulfil that contractual obligation, even if something happens to the house between exchange and completion.

sindakit

i know I need insurance set-up to start on the completion date, but I did find it weird they were throwing all these quotes at me before I have an approved mortgage.

I'll hold off until it's all confirmed and then search the web for deals.

ap1985

Surrey_EA wrote: »

As I understand it, the reason it is advisable to begin your buildings insurance from the point of exchange is that you are entering in to a contract to purchase the title of a specific property, and you need to fulfil that contractual obligation, even if something happens to the house between exchange and completion.

Thank you, I wasn't advised this from my solicitor or mortgage broker!

G_M

* the current (5th edition) of the Standad Condiions of Sale, used for most purchases now, puts the risk on the buyer, not the seller, from the date of Exchange

* Shop around? Do you usually? Or do you usually buy the first of whatever that you see or is recommended to you? Why change the habit of a lifetime? (oh yes - because this is a moneysaving site1)

* Income protection? What about health protection? Life insurance? Pet insurance for the goldfish? All personal choice.