Use our UK Finance guide and learn by experience. We outline pitfalls so that you don't have to learn the hard way, as many of us often do.
Property
House Insurance
Regardless of whether you're a home owner or a tenant, you will need to hold some form of house insurance policy. Your home and cumulative belongings together, more than likely constitute your most valuable possessions and should, for all intents and purposes be protected by a house insurance policy against loss, theft or damage.
House insurance can be divided into two basic subcategories, namely, household insurance or home contents insurance and buildings insurance. When you sign a mortgage agreement your lender will insist on you taking out a buildings insurance policy and will most likely want to facilitate the drafting of this type of house insurance policy for you, through a buildings insurance company with whom they are affiliated. This does not mean that you have to be insured with the house insurance company they would prefer you to deal with and you would be well advised to look around for a buildings insurance policy which you feel would best suit you. If you do so, your lender will want to check the buildings insurance policy and may even charge you to do so, but rather that than blindly going ahead and signing a house insurance policy without shopping around. Your lender cannot insist on you signing a household insurance policy but, to not do so would be nothing short of foolish.
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