5. Insurance and protection

You should prepare for the unexpected. Having home insurance and life insurance can help protect you should the worst happen.

woman with watering can

Your property could be repossessed if you don't keep up your mortgage repayments.

From something as minor as smashing a window to something as disastrous as a flood or a fire, you need to cover the cost of repairs to the house you've just spent so much money on.

Most lenders will insist you have home insurance in place, but you don't need to take it with them. Home insurance is a general term but in reality it's split into two separate policies.

Buildings Insurance: This can cover you financially for any damage to your building due to flood, fire or wind but depends on your provider and the level and type of cover you have. It can pay for repairs to the fabric and structure of your home. If the worst came to the worst, it could also cover the cost of completely rebuilding your house. You should check your chosen policy carefully to make sure you have the type of cover you need.

Contents Insurance: This covers the possessions in your home. This varies depending on your level of cover but could include things like the TV, furniture, pots and pans and gadgets. It can also include accidental damage, theft and loss outside the home. It's important to give extra consideration to valuable items, such as jewellery, as they may need their own provisions, as general cover might not reflect their true value. You should check your chosen policy carefully to make sure you have the type of cover you need.

How would you pay the mortgage if you became critically ill or passed away?

Life Insurance offered through our provider Legal & General could help make sure your mortgage is paid off if the worst happened. And you can even give yourself more cover to leave a legacy to loved ones. You can choose from Life insurance or Life insurance with Critical Illness cover.

Click here for more information and to get a quote.

You won't receive any advice from us in relation to financial protection products. To make you aware, we only offer protection products through our arrangement with Legal & General.