Get Your Head Round Property Insurance

smaller problems which cause less damage but still cost a small fortune to repair, such as water damage from a burst pipe, or the collapse of your TV aerial.

When your mortgage company insists you get buildings insurance, this is them covering their own back. If they lend you £150,000 secured on a house, and that house falls down, but you don’t have the funds to rebuild it (as you didn’t have adequate property insurance), they will have a loan secured on rubble.

And the chances are you would declare yourself bankrupt rather than try to pay back a mortgage on nothing as well as buy another property.

However don’t think you must buy property insurance from your lender. They will often bundle a quote into a mortgage offer, but you don’t have to get it from them. It can be cheaper to buy cover elsewhere, especially if you use a comparison search engine on the internet.

This is a good way to keep costs down if you get into property development (more info at http://www.propertytoday.co.uk/Get-your-head-round-property-insurance.11018.3700453.story).

The other common type of property insurance