Home and Life Insurance - Maze of Confusion

Katy Daly

Hi,
We are buying a house, and we are shopping around for life and home insurance. We have a 6 month old baby, and have car insurance with Aviva. Can anybody recommend their insurance company, or let me know if there are any tricks that can be used to get the most discounts that are available.
I would love to hear any stories of other peoples dealings with insurance companies in the past?

Thanks!!

oldyouth

They're not tricks, but there are things you can do to reduce your house insurance
1) Aviva will allow discounts because you have other policies with them, make sure they know about it
2) Install smoke detectors
3) Improve security. Discounts are allowed for alarms and security locks on windows and doors
4) Don't over insure. Some people declare the market value of their houses as a sum insured. You should only insure the property for the reinstatement (rebuild) cost. See here for a guide http://www.scs.ie/publications/digital_publications. Contents should be insured for the replacement cost at today's prices. Some insurance policies will automatically insure Contents for a set % of the Buildings sum insured, usually 30%. If this is too high for your circumstances, ask them for a quote on your suggested figure
5) Make sure insurers know that you are a family, rather than an individual wishing to insure. You will get a lower rate.
6) If the house is regularily occupied during the day, tell them

Just some off the top of my head

Katy Daly

Thanks Oldyouth
Can you please explain the difference between mortgage protection insurance, and mortgage payment protection? Which of them are required in order to get a mortgage?

Thanks!

Shifty

http://www.itsyourmoney.ie/index.jsp?pID=709&nID=718

Mortgage protection insurance
Mortgage protection insurance is designed to pay off your mortgage if you die and runs for the same length of time as your mortgage. So, if you take out a mortgage over 20 years, your mortgage protection insurance must also be in place for 20 years. You can however, change providers during the term of your mortgage.

This type of insurance does not cover your repayments if you cannot work because you are made redundant, or cannot work because of sickness or disability. For that type of cover, you need to get mortgage repayment protection. Make sure you have considered all your options first.

How much does it cost?
The premium you pay each month for mortgage protection insurance depends on the size of your mortgage, your age, gender, the state of your health and whether you smoke. The premium is fixed for the term of the mortgage.

Do you have to take out cover?
If you are under 50 when you take out a mortgage for a home you will live in, your lender must make sure you have mortgage protection insurance (or another life policy) to pay off the loan if you die. The main reason for this is to make sure your family home would not have to be sold to pay off the mortgage.

You do not have to take out this insurance if you are over 50, or if your mortgage is on an investment property, but it can be an advantage and some lenders may insist on it as a condition of getting the mortgage.

While your lender can insist you get mortgage protection insurance, they cannot insist that you buy it from them. You are free to shop around to buy it. Your lender must accept any suitable policy that is assigned to them.


Mortgage repayment protection

If you are taking out a mortgage, you might be offered mortgage repayment protection by your lender or broker. These policies are designed to cover your mortgage repayments if you cannot work due to compulsory redundancy, illness or disability.

The differences between mortgage repayment protection and mortage protection
Mortgage repayment protection is not the same as mortgage (life) protection - this is a separate policy designed to pay off your mortgage if you die. You do not have to take out mortgage repayment protection, whereas you must usually, by law, take out mortgage (life) protection insurance when you get a mortgage.


To sum up:

Mortgage protection insurance: Pays off your mortgage if you die during the mortgage term.


Mortgage repayment protection: Pays some of your mortgage repayments if you cannot work due to compulsory redundancy, illness or disability.


Hope that helps

Katy Daly

Perfect!

Thanks Shifty!

nonashmot

as far as home insurance goes old youth is right on the mark. if you are looking into life cover may i sugest you take out a increaseing convertable term assurance policy for the amount of the mortgage ,this will insure you pay off the morgage and provide extra money for your family in later years as you pay off the pricipal of you mortgage,in the event of your death.it is more expensive than basic mortgage protection but you will see the benefits of this policy later in life when the amount iof the mortgage is paid off and you will still have life cover to protect your family.if you reply to this post i will be glad to help you with the details