Home Insurance for a First Time Buyer

First Time Buyer – is Home Insurance a Must?

first time buyersAs a first time buyer it is all too easy to feel as though buying a home is a major uphill struggle. There is just so much to consider and you need to be sure that all of the required paperwork is up to date and filled out correctly.

As you are searching for the right mortgage you will be offered many different financial products and some of these you will need, but some of them will simply be added extras and not as important.

You will probably have seen that home insurance is one product that is mentioned a lot when you are looking for your first home. You might be wondering if you can leave getting insurance until you are in your new home, after all, if you are not in the home yet you don’t have to insure it – do you?

In actual fact the majority of lenders will not provide you with a mortgage until you have your home insurance in place. A number of lenders will require you to have both buildings and contents insurance in place, but some require just home insurance as a basic. Without home insurance the property that you purchase will not be covered for things such as fire and flood and this means that should something happen to your home you will not get any form of financial compensation which could lead to you losing your home if you cannot live in it.

So as a first time buyer keep in mind that home insurance really is a must and speak to your mortgage broker about the suitable products for your needs.

Please note the above text is for information purposes only and does not constitute as advice. If you wish to discuss your mortgage or insurance policies or require advice in these areas you should contact a Mortgage and Insurance Broker who is authorised to give advice.

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