And protecting your home
It is just as important to protect your home as it is to have cover for yourself.
- Building insurance cover
This is insurance covering the structure of the building. It protects the property in the event of structural damage and covers any rebuild costs (subject to the excess arrangements). Any mortgage lender will require their interest to be noted in this policy. Where the property is leasehold (as with most flats), the buildings insurance will normally be arranged by the freeholder and the cost charged on to the leaseholder within the service charges payable.
As a general rule of thumb, any item which cannot be taken away from the property is covered by the buildings insurance. Anything which can be removed should be covered by the contents insurance. This is only a guideline and any doubts should be raised with insurers as this definition can prove problematic in some instances, e.g. fitted carpets.
- Household contents cover
This is the insurance of property within a residence, e.g. furniture, clothing, personal possessions. Whilst lenders will be keen to offer contents insurance to borrowers they will not wish their interest noted in the policy. Cover is normally provided for insurance against fire, a full range of perils (e.g. water damage) and theft. Some policies offer a wider range of cover. All risks wording may be obtained.
Contents policies normally cover goods within the home, although most will extend to include small amounts of cover outside the home, e.g. bicycles, possibly on a payment of an additional premium.
- Lenders conditions assurance
Lenders may offer specific deals which have a condition attached that you take one or more of their insurance products. If this is the case your smartlife mortgage adviser will inform you. Types of conditional insurance can be: Buildings insurance, contents insurance, mortgage payment protection or term assurance (see earlier descriptions).
