GENERAL INSURANCE

There are many types of insurance you can take out with a mortgage -some are compulsory to have to get the mortgage - others are not. Others may depend on your circumstances.

Our regulator, The FSA, regulates the sale of most types of general insurance products.

Which insurance do you need?

Buildings Insurance

Everyone needs buildings insurance to cover their home in case the building is damaged or destroyed. While you have a mortgage, the lender will almost certainly insist that you have this cover.

Some lenders insist you take insurance but don't insist that you take their policy. This is called 'compulsory' insurance. Some lenders insist that you take out cover they arrange. This is called 'tied' insurance. Tied insurance is not usually the most competitively priced, and you could arrange cheaper insurance by
talking to 1st Call 4 Mortgages.

Many lenders let you arrange your own cover but charge an administration fee for checking the cover is sufficient. Some insurance providers will pay the fee for you.

Other lenders leave you free to choose your own insurance and do not make a charge.

Look at Section 9 of the Key Facts Illustration (KFI) to see if you have to arrange tied or compulsory insurance, whether you have to pay an insurance charge, and what optional insurance the lender may offer.

Contents Insurance

You will also probably want contents insurance to cover your furniture and possessions against loss or damage.