Building and Contents Insurance

Buildings Insurance

A lender is permitted by law to insist that a property, subject to a mortgage, is insured continuously in keeping with their minimum requirements. Due to this it is normally a condition of the mortgage that buildings insurance is taken out.

The sum insured must be based upon an estimate of current rebuilding costs and must be increased in line with the House Rebuilding Cost Index, which may result in premium increases.

It may be a condition of your mortgage that the insurance is arranged through the lender. If this is the case and you wish to arrange your own cover, it is imperative that it is in force at exchange of contracts and you should be aware that the lender might impose a charge and they will insist that their interest is noted on the policy. It is your responsibility to ensure that the payments are maintained to ensure continuity of cover.

Your policy may have limits, exclusions and excesses. They will be explained fully in your policy document and should be checked when you buy your policy and at each renewal date. The policy document is a legal document and if there is anything that you do not understand ensure that you ask for further guidance.

Contents Insurance

It is recommended that you arrange adequate cover to offer protection for all your personal possessions; this can be extended to provide cover outside your home. It is your responsibility to review this cover on a regular basis to ensure adequate cover is in force at all times.

The policy is a contract between you and the insurer and places legal obligations on both parties. The insurer agrees to cover you against loss, damage or legal liability during the period you are covered for. In return, the policyholder and members of their household must keep the insured possessions in a good state of repair and take all reasonable steps to prevent injury, loss or damage.

Your policy may have limits, exclusions and excesses. They will be explained fully in your policy document and should be checked when you arrange your policy and at each renewal date. The policy document is a legal document and if there is anything that you do not understand ensure that you ask for further guidance.

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