Mortgage protection insurance

If you are buying a home you will need life insurance (mortgage protection) and home insurance as soon as you take out the loan. These are two insurance types that your lender will require you to have at a minimum.

A Life insurance policy pays off your mortgage if you die during the term of your mortgage.

Buildings only insurance covers the structure of the home against damage by fire, explosions, storms, floods, subsidence, landslip and malicious damage. Remember - buildings only insurance doesn't cover house contents!

Lenders are legally obliged and will insist that you get mortgage protection insurance and house insurance (buildings cover minimum), but you don't have to buy these insurance products from them. You can shop around for better offers.

There are also optional types of insurance you may be offered when taking out a mortgage like mortgage repayment protection, serious illness cover or content insurance. In any case, shop around to get the best deal available on the market.