Why is Insurance Important?

When you arrange a new mortgage it is likely to be at a time when you are reviewing your financial position. It is important that you take time to also review your protection and insurance arrangements to ensure you, your family and your home are adequately protected. There are some insurances which your lender will insist you take out and some which just make good sense.

At Dedicated Mortgage Solutions we can give you advice on the various options available to you but here are some things you should consider:

If the main breadwinner (there may well be more than one) in the house were to die or suffer a critical illness such as a heart attack, stroke or cancer and be unable to work, could you still afford to make the monthly payments on your mortgage and maintain your current standard of living?
Protection policies such as life assurance and critical illness cover are generally less expensive to take out when you are younger, even though you may not feel you need them at this time.
What would happen if you had an accident or were ill and unable to work for a period of time? Your employer may offer you sick pay but this will only be for a set period of time and you may wish to have additional cover for this.
Have you considered what would happen if you were unfortunately made redundant? How would you continue to meet your monthly commitments, until you found new employment?
Your lender will insist your home is insured through a suitable buildings policy but are your contents and valuables adequately covered to allow you to replace them all in the event of a flood, fire or theft?

These are just some of the questions you should ask and why it is so important you consider your insurance and protection requirements along with your mortgage. A brief description of the different categories of insurance you can take out are covered in our Insurance Section. You can also contact us on 0845 602 5541 to discuss your personal requirements in more detail or complete our online enquiry form.