The different types of insurance needed when buying a property

Oakheart Property
Your home is more than likely the biggest purchase that you’ll ever make. So, it’s important to make sure that you and your property are adequately protected. If you’re currently in the process of purchasing a property or you’re currently house hunting, taking the time to do your research and make sure you fully understand the different types of insurance is crucial. You’ll find that there’s a wide range of different types of insurance available and various providers too! 

We understand that getting to grips with the different types of insurance can feel a little overwhelming, particularly if you’re unsure where to begin. Here at Oakheart Property, our goal is to make the homebuying process as easy and straightforward as possible. So, we’ve compiled some information on the different types of insurance you’ll need when purchasing a property. 

Life Insurance 

Life insurance is a type of insurance policy that will pay out if you were to die before you have paid off your mortgage. We understand that it can be incredibly uncomfortable and difficult to think about the worst case scenario, but it’s important to do so. Life insurance is an essential requirement for homeowners who have not fully repaid their mortgages. Most lenders will specify that you must take out a policy before they have finalised the loan. This ensures that the property will be fully paid off in the event of your death. If you have dependents, life insurance can ensure that they are not forced to sell the property or focus on financial worries at an already incredibly difficult time. It’s important to take the time to do your research into the different types of life insurance available. Read the policies carefully and decide which one best suits your circumstances. 

Buildings Insurance

Buildings insurance is a policy that is designed to cover the structure and the permanent fixtures and fittings of your property. It’s extremely important to check exactly what your policy covers. It’s important to make sure that buildings insurance is in place from the date of completion as this is the date that you’ll be financially responsible for the property. If something unexpected was to happen, you would be liable for the cost and any losses. 
Generally, this type of insurance covers the repair and rebuild of unexpected damage by an event that you’re insured for. This might include fire and flooding, storm damage and falling trees, and vandalism.  Some insurers may give you the option to add additional occurrences to your policy for extra protection. 

Contents Insurance 

Contents insurance covers your possessions inside of your home. It might cover items like clothing, furniture, carpets and appliances. However, you should always check exactly what is covered under your specific policy. It’s also important to never assume that an item is covered, always double check. If you own any high-value items that you’d like to insure, then it’s likely that you’ll have to specify these on your policy. You may find that some standard insurance plans will not cover high-value items and you’ll need to take out a separate policy. Generally, contents insurance will protect your possessions against theft, vandalism, fire and flooding. We highly recommend checking through your policy and being clear on what your insurer will cover. 

Other Insurance: 

Here are some other types of insurance that could prove to be extremely useful and are worth considering… 

  • Mortgage Payment Protection Insurance (MPPI)
  • Income protection insurance
  • Critical illness insurance

Considering selling your home or buying a property in Colchester, Essex? Oakheart Property can help. We have a team of property experts across Essex and Suffolk who will be there to support you throughout your entire property buying or selling journey. We’ll do everything we can to make the process as simple and straightforward as possible. Get in touch with us today and find out how we can help you! 

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