Buying a home? Here is the insurance you need.

You will want to protect your investment and have insurance cover should you need to repair or rebuild your home, or replace your possessions. Home insurance will protect your home from events such as weather events, burst pipes, fire, or break-ins.

You may have had tenants home insurance already which covered your personal belongings in your rented home. Owner occupier home insurance typically includes two types of cover.

If you are buying a house with a mortgage your lender will require you to have a minimum level of buildings insurance. Even if you don’t have a mortgage, it is still wise to have this cover in place.

Buildings insurance is financial protection should you need to repair or rebuild your home following an insured event.

The amount of buildings cover you need depends on the rebuild value of your house. This is different to the market or purchase value of the house and is the amount that it would cost to rebuild the physical building should it be damaged or destroyed. 

If your home is of non-standard construction or is a listed or period building or a protected structure then you may need to arrange specialised non- standard home insurance.

This type of insurance cover offers financial protection should the contents of your home be damaged or destroyed in an insured event. The contents of your home are the items that you could take if you moved house as opposed to the fabric of the house or permanent fixtures and fittings, for example, electrical appliances, furniture, or clothes.

It is essential to adequately assess the value of your possessions should they need to be replaced, your home contents may have more value than you realise when you add it all up.

If you have any single, valuable items such as jewellery, sports equipment, or electronics, you may need to arrange specific cover with your home insurer. If you need cover for these items when you are outside your home you will need ‘all risks’ cover.

Unoccupied home insurance covers your empty home for short period of time. Depending on policies, generally this protection lasts from 30 to 60 days.

It is also worth mentioning that if your new home is to be unoccupied for some time, or empty while you renovate it prior to moving in, then you may need non standard home insurance or self build insurance until you are ready to move in. Self build insurance offers protection for unoccupied homes and building sites while your home is in the process of construction or renovation.

Mortgage protection is insurance cover which, essentially, pays off your mortgage should you die during the term of the policy. Generally, the term of the policy is the same as the term of the mortgage and the amount of cover declines as your mortgage is paid off.

Most banks and lenders will require you to have mortgage protection in place before you can draw down your mortgage.

It is a relatively simple and affordable form of insurance but will offer you valuable peace of mind that your loved ones will be secure in their home should the worst happen.

If you have not already done so, it is really worth looking at taking out life insurance when you buy a home. Life insurance offers a cash lump sum should you die, either during the term of the policy or in the case of whole of life insurance whenever you die.

The benefit received from life insurance can be used to pay off a mortgage, clear outstanding debts, or to replace your income should you die. It is a really valuable form of protection and may not be as expensive as you think. 

You can bundle life insurance with specified illness cover or purchase a stand alone specified illness insurance policy, also known as critical illness insurance.

This form of insurance pays a lump sum should you be diagnosed with one of your insurer’s list of specified serious illnesses.

This will replace lost income while you receive treatment and recover from your illness and could be used to cover mortgage payments while you are ill, giving you peace of mind that your home will be secure.

Income protection will offer up to 75% of your income in regular monthly payments should you be unable to work due to illness, injury, or disability. 

It may complement any illness benefit you receive from your employer or offer protection where you have little employer protection should you be unable to work or if you are self employed.

This form of insurance cover is really valuable in allowing you to continue paying your mortgage if you are unable to work, allowing you to remain in your home and focus on your recovery even though you are unable to work due to illness, injury, or disability.