The A-Z of General Insurance!

What you should know.

Accident, Sickness and Unemployment – Also known as Mortgage Payment Protection insurance this policy provides cover for mortgage or loan payments in the event that the policy holder is unable to work due to accident sickness or unemployment. The claims payment is designed to mirror your mortgage or loan payment plus around 25% for ancillary costs such as insurance premiums. The term generally matches the mortgage or loan term. This type of policy normally only allows for 1 claim to be made during the term and will pay out for a 12 or 24 month period. After this the existing policy ceases and a new policy must be taken out. The policy has no maturity value.

Buildings Insurance – designed to cover your property (bricks and mortar) against damage. The sum assured is usually the rebuild cost of your property however most providers normally have a blanket cover up to £500000. This is the only compulsory type of insurance required by lenders when taking out a mortgage or remortgage.

Contents insurance – usually taken in conjunction with building insurance. It is not a legal requirement to have this cover but it is highly recommended as it is designed to protect your household and personal items against theft or damage. The sum assured is normally a blanket cover up to £50000 with the option to add individual expensive items