We are often asked by Mortgage Brokers and Conveyancing Solicitors to arrange Building Insurance for a Mortgage, to cover their clients who are in the process of buying a Property.
Normally during the course of a Property purchase you will need to start looking at Building Insurance. This is usually requested by Conveying Solicitors, around the time you exchange contracts.
Why Building Insurance for a Mortgage is Important
Your Mortgage provider want to be assured the Property you are borrowing on is fully protected from damages of various kinds. Essentially, they have interest in that Property until such time as you pay off your Mortgage and so they will often insist that you take out Building Insurance to get your Mortgage and to complete on your purchase.
What does Building Insurance for a Mortgage cover
Buildings Insurance typically includes cover for damage caused by:
- Fire, Lightning, Explosion or Earthquake and Smoke Damage caused by these perils
- Aircraft and other flying devices or items dropped from them
- Storm, Flood or Weight of Snow
- Escape of Water from and Frost Damage to fixed water tanks, apparatus or pipes
- Escape of Oil from a fixed domestic oil fired heating installation and smoke damage caused by a fault in any fixed domestic heating installation
- Theft or Attempted Theft
- Collision by any Vehicle or Animal
- Any Person taking part in Terrorism, a Riot, Violent Disorder, Strike, Labour Disturbance, Civil Commotion or Acting Maliciously
- Subsidence or Heave of the site upon which the buildings stand or Landslip
- Breakage or Collapse of fixed radio and television aerials, fixed satellite dishes and their fittings and masts
- Falling Trees, Telegraph Poles or Lamp-Posts
You can usually add contents Insurance and Personal Possessions too.
Each policy wording is slightly different though, so it’s important to check you are getting the cover you need.
What to look out for with Buildings Insurance for a Mortgage
When taking out Buildings Insurance with a Mortgage it is important you’re getting the right cover for a Competitive Premium, whilst making sure you’re meeting the criteria that has been set out by a Mortgage Lender
Getting the Paper Work right
First you’ll need to check if the Mortgage Lender wants their details noted on your policy, some Lenders are happy to just see their name noted on the Policy (as an interested party) and some don’t need to be noted at all.
Check what you have in place already if this is not your first time buying, to see if you can transfer your existing Contents Insurance to your new Property.
Getting Proof Fast
Getting acceptable paper work to the Mortgage Lender is one of the most common causes of delays for your Mortgage Application, so make sure the company you arrange your Insurance with can give you the proof you need on the same day of taking out a Policy, to prevent unnecessary delays to complete on your purchase.
Get Buildings Insurance for a Mortgage fast
As Award Winning Independent Insurance Brokers we are able to offer you Comprehensive Cover for a Competitive Premium – with the all important proof of cover you need on the same day of taking out your policy.
Contact us for a no obligation quote, we are often asked to arrange Building Insurance for Mortgages
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I referred one of my clients who turned out to be rather demanding. Dan took it in his stride and put together a bespoke policy suitable for the clients needs who took the policy out. I have no hesitation in recommending them.
I have used Evans Insurance to arrange insurance both personal and professional and am always guaranteed first class efficient service at a competitive price.