We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
When to take out mortgage insurance and will?
leypt1
Posts: 170 Forumite
Hi everyone,
We are waiting to exchange on our first flat, which we're buying as tenants in common. We'll be getting a declaration of trust drawn up.
In the meantime we've been looking into taking out life insurance, income protection, and contents insurance. We've also been looking into getting a will (my union provides a free legal service).
Filling out the will requires us to list our current assets, which obviously doesn't include the flat yet. Likewise, getting a contents insurance quote involved filling out all sorts of details about the flat which we don't have to hand. We're therefore not sure whether we should be waiting until exchange (but what if one of us gets hit by a bus the day after that?)
At what point in the buying process are these steps normally taken, i.e. before or after exchange?
Thanks for any input!
We are waiting to exchange on our first flat, which we're buying as tenants in common. We'll be getting a declaration of trust drawn up.
In the meantime we've been looking into taking out life insurance, income protection, and contents insurance. We've also been looking into getting a will (my union provides a free legal service).
Filling out the will requires us to list our current assets, which obviously doesn't include the flat yet. Likewise, getting a contents insurance quote involved filling out all sorts of details about the flat which we don't have to hand. We're therefore not sure whether we should be waiting until exchange (but what if one of us gets hit by a bus the day after that?)
At what point in the buying process are these steps normally taken, i.e. before or after exchange?
Thanks for any input!
0
Comments
-
Contents insurance isn't a requirement for a mortgage, it is the building's insurance they care about. As you are buying a flat, I assume leasehold? Therefore that is usually covered by a block insurance held by the freeholder.
I am making a lot of assumptions here mind you! If it is LH, have you received a management pack which tells you what your service charges cover?1 -
You can do the will whenever. You don't HAVE to list anything... The will can be as simple as "Everything to my OH, unless they're also dead, in which case everything to Mum / Brother / Best Mate Dave / Battersea Dog's Home"
Buildings insurance is usually done from exchange of contracts. But a flat will usually have buildings insurance done by the freeholder anyway.
Contents insurance from when you move in - are you in rented currently? Because, if so, do you have that now...?
Life insurance, income protection, etc - do you really want/need them? There's always people happy to sell you lots of insurance that you may not need.2 -
Contents insurance just before you move in, life assurance and income protection can be taken out whenever. They are not linked to your property.I am an Independent Financial Adviser (IFA). Any posts on here are for information and discussion purposes only and should not be seen as financial advice.1
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 355.7K Banking & Borrowing
- 254.9K Reduce Debt & Boost Income
- 456.1K Spending & Discounts
- 248.2K Work, Benefits & Business
- 605.8K Mortgages, Homes & Bills
- 179K Life & Family
- 263.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards