Home insurance a good idea 'unless you can afford to repair damage'

Posted : 15-07-2008

Home insurance is a vital part of securing a mortgage on a property, according to one expert.

Writing for Best Syndication, UK Loan Store contributor Joseph Kenny claims buyers will not be able to close a mortgage deal if they do not have home insurance to protect the property from floods, fire, theft and other difficulties.

"Unless you can afford to repair you home if it is damaged, it is usually a good idea to get insurance for your home," he says.

If buyers pay a deposit of less than 20 per cent of their new home's value they may be charged additional premiums on their home insurance to protect them if they default on their mortgage repayments, Mr Kenny adds.

Meanwhile, financial comparison website fairinvestment.co.uk has urged homeowners to ensure their property and its contents are insured against possible flood damage, claiming home and contents insurance "is not something to be sacrificed".

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