Buying a Home – Step by Step – Part 3

Friday May 18, 2018

So here we are, the final instalment in The Finance Roome’s mini series helping to explain the home buying process from start to finish.

Most of you will assume that reaching completion means your journey is over. You are about to move in, you are looking at furniture and are collecting paint charts. However, nothing could be further from the truth.

As we proceed with your mortgage application we will talk to you about your options for insurance, known also as protection. It is vital to make sure this is fully explained to you during the process – afterwards is too late! Nobody likes to consider the worst, but it is increasingly important to ensure that your commitments are paid should the worst actually happen and you become unable to work due to illness or even death. We will assess your individual situation and help you to work out exactly how much cover you might need whilst taking into account affordability and future planning. Take a look at our website page for more detailed information about life cover, critical illness and income protection.

We will explore too whether family income benefit or sickness/unemployment cover might be advisable for you. For example, family income benefit should be considered by anyone who has children and is relatively cheap. Consider what might happen to your family if the main breadwinner were to become unable to work or die tragically young.

On a less serious but still important note, buildings and contents cover is a must. It is generally a condition of your mortgage contract that you insure your house against physical damage and this has to be in place as soon as contracts are exchanged (see last week’s blog for information on what this means). It is best to shop around which is where we can help you as independent advisers to find the very best deal and of course adequate cover for your home and belongings. Contents insurance should offer cover for belongings against fire, theft, acts of God and accidental damage. Click here to find out more and of course please do call us or email  if you wish to discuss any of these options – we will make sure you can relax and enjoy your new home safely covered without worry.

Last but not least, if you are a landlord make sure you look at taking out insurance specifically designed for you. Your aim is to generate an income and obtain capital appreciation through your property investments. Think about what might happen if a tenant fails to pay rent, if your property is vacant for any length of time or if the worse happens and a tenant suffers injury due (for example) to an unsafe stairway? Let us help you to decide on the right amount of cover for your investments.

To sum up, whether you are about to move into your first home or buying your 10th investment property we are here to make sure you have all eventualities covered.