Buying your first house can seem like a challenge so daunting it’s easy just to stay renting. There’s so much to consider – solicitors, home insurance, stamp duty, a hefty deposit. The list goes on! To help you demystify at least some of the process, here’s some advice on home insurance for the first time buyer.
You’ll need to choose what home insurance you need. Your mortgage provider will require you to have mortgage protection and home insurance, at an absolute minimum. So these two are a must. There’s also the option of Serious Illness Insurance, Contents Insurance, and Mortgage Repayment Protection Insurance.
Let’s take a look at each home insurance type, to help you choose the ones right for you!
1. Mortgage protection
Mortgage protection clears your mortgage when you die. There’s no lump sum left behind, as with life insurance. If you get a mortgage, you’re legally obliged to buy mortgage protection.
A lot of people take out their cover through a bank or broker. But what they don’t realise is that most banks and brokers only deal with one insurance company – which offers neither the best rates nor the best terms for them.
Mortgage protection bought from a bank is non-transferable. Usually, mortgage protection works on a decreasing term assurance basis, so it’ll reduce alongside your mortgage as you pay it off. There’s also the option of level term insurance and paying a consistent amount.
With a joint mortgage, you need to take out a policy to cover both you and your partner.
2. House Insurance
Realistically, your house is your most valuable asset. It makes sense to get house insurance in case something happens! Every policy is a little different with our policies, house insurance includes:
- 24-hour, 365 days-a-year, nationwide emergency HomeRescue Service
- Cover for personal money and credit cards stolen from the home
- Fire brigade charges benefit up to €2,000
- Cover for the theft, loss or escape of oil
- Optional Extra: Accidental damage cover for buildings and contents
Our HomeRescue Service is great value with great benefits, and covers:
- Damage to plumbing
- Blocked drains
- Broken glass
- Breakage of glass to external windows or doors
- Overflowing water tanks
- Your home being made unsecure – e.g. locks, doors, and windows
- Electrical failure within the home
Once the emergency repair has been made, the following additional benefits are also available if required:
- Overnight accommodation if your home cannot be lived in (including transport to and from your home)
- Furniture storage for 7 days if your contents are at risk
- Urgent message sent to a family member at home or abroad.
For a detailed guide to house insurance, check out Home Insurance - Get to know the basics. It’s a handy post, with answers to many questions about house insurance policies. For other questions please give us a call.
3. Serious Illness Cover
Serious Illness Cover lets you pay off your mortgage if you suffer from a specified illness, covered by your policy. Usually, Serious Illness Cover can be built into your mortgage protection policy, though you can take it out as a separate policy.
Here’s an example. You have a heart attack and you need to take a few months off work to recover. Serious Illness Cover activates, and will pays towards your mortgage. For more information on Serious Illness Cover or to take a look at the Income Protection Plans we provide, click here.
4. Mortgage Repayment Protection Policy
Mortgage Repayment Protection Policy ties in with Serious Illness Cover and Income Protection. It covers your mortgage repayments if you’re not able to work because of a forced redundancy, or illness, for a set amount of time, or until you’re back in work.
5. Contents Insurance
Content Insurance covers your stuff – your telly, your laptop, your fridge and more. The things that make a house feel more like a home!
Technically, contents are classed as household goods and personal effects. When you’re valuing your contents, don’t overvalue or undervalue them. It’s best to make up a list of everything you’d take with you if you were to move – that’s the stuff you need to get insured.
If you’re thinking of switching home insurance provider, please all us on (01) 408 4004 to learn more about how we can find you the best cover at the best price.