When buying a home, be it your primary residence or a buy-to-let property, one of the things you’re going to have to factor into your calculations is buildings insurance. Technically speaking, buildings and contents insurance isn’t mandated by law, but your mortgage lender is likely to ask that you have some in place as part of the deal.
Rather than being an extra annoyance during the home-buying process, home insurance is there for a very good reason, as the moment you get the keys to your new property, it and everything in it becomes your responsibility. You’ll usually find buildings insurance paired together with contents insurance so that the building itself and your belongings are protected. The likelihood is also that your mortgage lender will offer it, but it is entirely up to you where you get yours from.
What Does it Cover?
For what is typically a relatively nominal monthly cost, buildings and contents insurance will cover you for fire, flooding and storm damage to any part of the building’s structure – which includes things like kitchens anything that’s physically attached to the building. Whilst you’ll be covered for losing your possessions inside, the main reason why buildings insurance is vital is that it covers you for things like subsidence and other issues that can result in a full house rebuild being required. Find yourself in this scenario without insurance and you’ll really wish you hadn’t overlooked it.
What Date Do I need it From?
Prior to completion on your new home, it’s not your responsibility, so you’re ok as long as your home insurance is in place for the day you get the keys – even if that predates your moving in by a week or two. You should remember that like with any other type of cover, you can shop around for your buildings insurance online for a better deal, but you need to make sure you check through your current provider’s terms and conditions to see if there is any financial penalty for switching provider before the end of your existing cover.
If there is a delay in the chain and you’re the owner of your new property before you’ve moved out of your old home, you’ll need to pay for buildings insurance on both for that period, as you’ll still be responsible for both. Just be sure that you’re covered for whichever properties you own at any given time or you could end up counting the cost in a major way.
Home insurance is just one of the many factors that need to be considered when buying a new home and at Yes Mortgage Services we’ve got you covered every step of the way. What’s more, the mortgage advice we offer is completely free and unbiased, as we charge no brokerage fee and our sole aim is to find the right products for your needs and to make the whole home-buying process as smooth and painless as possible.
If you’d like to know more about anything discussed here, you can message us via the website or give us a call on our Freephone number 0800 612 5596. Our knowledgeable team is on standby to help you in any way they can.
It’s the same number to arrange a no-obligation appointment with one of our brokers, which can be done at a time to suit you – even if it’s in the evening! It’s just one of the many ways that we go above and beyond to make sure that our customers feel looked after.
YES Insurance Services
Our team can help you, irrespective of whether you are looking to protect your family from the unpredictability that life throws at it or protect your income if you are unable to work due to accident or ill health or looking to buy a new home, re-mortgage an existing property.
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