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Buildings insurance and Life insurance

Hi All,

Does anybody know when the best time is to get Buildings insurance and Life insurance because our mortgage broker is pushing for us to get it as soon as possible but I don't see the point in getting and paying for it now because we haven't even had our mortgage approved yet and completion wont be for another few months.

Thanks in advance :)
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Comments

  • 4ndy8
    4ndy8 Posts: 22
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    Hello, you could set these up but don’t have them start yet. Then call them when you know dates. That’s what I’ve done.
  • Slithery
    Slithery Posts: 6,046
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    You don't need building insurance until exchange, you don't need life insurance until completion.
  • dimbo61
    dimbo61 Posts: 13,712
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    How can you take out buildings insurance until you know what property you are buying.
    Use a comparison website like moneysupermarket or compare the market etc
    As for Life assurance Please Please please take this out to cover the whole mortgage amount and ask for Level term. I.E. the amount it would pay out remains the same for the whole term.
    Again shop round with comparison websites or Cavendish online, Zurich, moneysupermarket, etc
  • G_M
    G_M Posts: 51,977
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    It is worth shopping around in advance for both. Don't just automatically use the broker.


    You can select the policies in advance (indeed you should) but you do not set them up till Exchange of Contracts (at which point you are legally committed to buying).
  • eddddy
    eddddy Posts: 16,292
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    If you want/need life insurance to give financial security to your dependants, maybe you should get it now.

    Then...
    • if you die before you buy a property, the insurance pay-out will provide the money for your dependants to buy a property to live in.
    • if you die after you've bought a property, the insurance pay-out will pay off the mortgage, and allow your dependants to continue having a property to live in.
  • kingstreet
    kingstreet Posts: 38,690
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    Slithery wrote: »
    You don't need building insurance until exchange, you don't need life insurance until completion.
    Both should start at exchange of contracts. Completion for buildings insurance, in the case of a newbuild.

    If you die between exchange and completion, the funds are still required to complete the contract.

    It can take months to get life, critical illness and income protection cover medically underwritten. Applying now, getting underwritten and being ready to go on risk at exchange of contracts is the sensible route.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • shortcrust
    shortcrust Posts: 2,697
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    I let my MA ramble on about insurance quotes because he was a nice chap and his boss was observing him. When his boss left the room I pointed out that his quotes were three times more expensive than the sort of quotes I’d found myself.
  • Marvel1
    Marvel1 Posts: 7,157
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    I thought life nsurance was optional.
  • shortcrust
    shortcrust Posts: 2,697
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    cjdavies wrote: »
    I thought life nsurance was optional.

    I don’t have it, but I’m single with no dependents and really don’t care what happens post Shortcrust. Is it perhaps needed when there are two people on the mortgage?
  • GoingOn30
    GoingOn30 Posts: 230
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    Of course your advisor is pushing these as he will make a pretty penny in commission!
    Life insurance is optional, I don't have any as I have no kids (and no immediate plans for kids) and a good "death in service" benefit from my employer. I would get it once I had a child though.
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