Many mortgage lenders in the UK require building insurance to obtain a mortgage offer. They have an enormous financial stake in your property and want to ensure that all money can be recovered if something goes wrong.
A lender rarely requires you to take out Contents Insurance, as they do not have a stake in your belongings.
You should clarify whether Building Insurance is compulsory for your lender before jumping into a deal—while many make it a mandatory condition, not all do.
If you own your house outright, you do not have to take out Home Insurance if you don’t want to because you are not obligated to a mortgage lender. However, many insurance experts recommend that you do so to protect your financial stake in the house.
How often is Home Insurance taken out?
In the vast majority of cases, when a property is bought, Home Insurance is taken out. This is because a house often represents the largest asset that a family owns – and they, therefore, want to protect it.
How much does Home Insurance cost?
There are several cost comparison websites you can use to get quotations on Home Insurance. Keep in mind that the price will change depending on the size, location, and value of your house. The age, current condition, and the materials it is built from will make a difference too.
Home Insurance is usually paid annually, although some people choose to pay on a monthly basis. Prices can range from £100 up to £500 or higher, depending on all the factors listed in the paragraph above. Usually, the cost of paying it will be considered worthwhile for a typical homeowner, when considering what’s at stake.
How long does a Home Insurance policy last?
Most typical Home Insurance policies last for 12 months. You can then renew the policy at the end of the year, or choose to move to a new insurer. Price comparison websites make it easier to look at all your options, and decide which one makes the most financial sense.
How long does a Home Insurance claim take to get paid back?
If you make a Home Insurance claim, it can take anywhere up to a year to be paid back. Sometimes, it can be sorted in a few weeks or months, but on other occasions, you can be waiting for up to twelve months or perhaps even longer.
This can put you in a difficult situation, as you need to find a way to house yourself and afford the essentials in the interim. That’s why it is so important that you clearly understand the terms of your policy going into it so you are not misled about what you can or cannot claim.
If you need support making a home insurance claim, then some experts can assist you in this area.
Advantages of taking out Home Insurance
Home Insurance can provide crucial peace of mind to a property owner if something goes wrong.
Taking out a policy may be particularly important if you are in a situation where something going wrong is more likely. For example, suppose your location has a high risk of flooding or storms that are extremely common in your part of the country. In that case, the risk of living there is greater, and the need for Home Insurance may increase.
You could also feel this way if there is a high crime rate for burglary in your neighbourhood.
Home insurance can also be an extremely practical financial exercise. If you have items of high value in your home, then Contents Insurance will keep you protected.
If you’re hoping to sell your house fast, get in contact with the friendly team at SOLD.co.uk today!
