Mortgage Insurance and Income Protection

Before granting you a mortgage, building societies or insurance companies often insist that you take out a building policy to protect their own interest in your house or flat. Building societies usually act as agents for insurance companies and may therefore stipulate with which company you must insure. Many building societies pay the premium directly to the insurance company, and then ask you to refund the cost together with your mortgage repayment. They may also retain the policy until you have repaid your mortgage.

If you own or buy a leasehold property, you may, without knowing it, be paying twice for insurance you do not need. Many leasehold blocks of flats and town houses are insured for the whole outside buildings under one policy, each resident paying his share of the premium as part of his maintenance charge. There is no need to duplicate this insurance when you take out your mortgage, and you should inform your building society that you are already covered. Check this point from your lease even if you have been living in your present home for some time.

If your building society arranged only fire insurance for your property, ask them to extend the policy to cover all the items listed above. As you need this extra insurance, you might just as well include everything in one policy.

Contents policy What is covered?

A typical contents policy covers the contents of your home against the risks, listed in items i to 8 and II above of the building policy. However, with the contents policy there is usually no excess (i.e. no obligation to pay the first £60 say, of any claim yourself) under the Section s covering storms, floods, bursting and overflowing of water tanks, pipes, etc. Many insurers limit compensation of any one article to 9 % of the total sum insured, so if you have one or two particularly valuable items in your home and want full compensation in the event, say, of theft you should have an `all risks' policy). Most contents policies exclude documents of any kind, passports, season tickets, deeds, bonds, cheques, share certificates, manuscripts, medals and coins.

Cash, currency notes, bank-notes and stamps are often only insured up to £500, or, if the total value of the contents is less than £2,000, up to 9 % of the total value. This limit should be satisfactory for most people, but if you habitually keep more than this amount at home, arrange specially to increase the limit. Articles such as portable radios, record players or cameras usually kept at home are covered when temporarily taken outside


Mortgage Insurance and Income Protection

Payroll Giving
It’s all very easy to organise.
Just ask the Personnel or the Payroll Department at your company and, if they already have a scheme, they will give you the relevant forms.  HM Revenue & Customs’ website has a list of Payroll Giving agencies and explains payroll giving in more detail.

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read on: Householders Insurance - A typical contents policy also covers :

Before granting you a mortgage, building societies or insurance companies often insist that you take out a building policy to protect their own interest in your house or flat. Building societies usually act as agents for insurance companies and may therefore stipulate with which company you must insure. Many building societies pay the premium directly to the insurance company, and then ask you to refund the cost together with your mortgage repayment. They may also retain the policy until you have repaid your mortgage.

If you own or buy a leasehold property, you may, without knowing it, be... see: Householders Insurance - A typical contents policy also covers :