Right from getting in touch with a mortgage broker to getting a suitable mortgage  for your dream home, getting a new home is an elaborate process.

It certainly feels great when your mortgage application gets approved and you get closer to moving into your new home. However, it is never advisable to purchase a home without making arrangements for ensuring its security. This is why getting the right insurance is very important along with purchasing a home in the UK.

So, what insurance do you need when buying a house ?

Depending on your requirements and circumstances, you can choose from various insurance policies while buying a home in the UK. Seek help from your financial advisor before making a decision and finalizing home insurance.

Why is insurance important when buying a home?

The property you buy is likely to be the biggest purchase you will ever make in your entire life. When you are spending a fortune and your hard-earned money on a new home, you cannot risk its security and your peace of mind if things go wrong.

Getting insurance while buying a home provides you with a safety net that your property and the funds invested in it are secure. It helps you relax knowing that your finances will not be hampered if anything goes wrong regarding the property you purchase.

Depending on the type of insurance you decide to get for your home, here are some important ways in which it can help you financially:

• Insurance helps you pay for repairs and damages caused to your house
• It helps you replace your lost, damaged, or stolen belongings
• It helps you keep paying your bills if you are not able to work due to an illness or injury
• It provides financial support to the loved ones living in your house if you pass away

Types of insurance to choose from while buying a home.

Here are some of the most important and beneficial insurance policies you can choose from as you buy a house in the UK:

Buildings insurance

If you are getting your house on a mortgage, it is always advisable to get buildings insurance with the same. Although it is not a legal obligation, but  mortgage lenders will have condition that  borrowers to have buildings insurance when they exchange the final contracts for buying properties.

A buildings insurance is applicable to you once you become the legal owner of a property and are responsible for the same. The insurance policy covers the cost of conducting repairs or rebuilding the property from scratch in case it is damaged.

Typically, buildings insurance covers the complete structure of your building, areas outside the building (still a part of your property) such as gardens, and permanent fixtures and fittings like baths and kitchens.

However, always remember that you will need to make arrangements for buildings insurance only if you are buying a freehold property. If you are buying a leasehold property, the arrangements will be made by the freehold owner (landlord) of the property. In either case, getting a mortgage would require you to have this insurance to purchase your new home.

Contents insurance

As the name suggests, contents insurance is an insurance policy that protects your belongings as you move into your new house. From your television and desktop to your washing machine and dishwasher, the insurance covers the damages incurred to all your valuable belongings.

Many homebuyers choose to purchase property and contents insurance together as it often costs them less as compared to buying the two separately. Depending on the premium you pay and the cover you are given, you can rest assured about protecting your belongings while moving into a new property.

Life insurance

While this insurance policy is not directly related to a new house, it is often purchased by homebuyers along with new properties. People often purchase a new house to build and nurture ties with their loved ones. As you wouldn’t want your family members to face financial hassles in your absence, life insurance provides them with financial help in case you pass away.

If you have purchased a home on a mortgage, a holistic life insurance policy can take care of the repayments in your absence. The amount of cover you need would typically depend on the size of your mortgage and other debts that need to be settled. Always seek help from your financial advisor before getting a insurance policy for your loved ones.

Critical illness cover

Homebuyers getting life insurance also often opt for critical illness cover as they purchase a new home in the UK. While life insurance tackles the worst-case scenario of you passing away, critical illness cover deals with illnesses and injuries.

As the name suggests, insurance provides financial aid to you and your loved ones in case you encounter an unforeseen illness or face a serious injury. It generally covers severe health issues that can affect your family's financial stability, such as heart disease, cancer, strokes, etc.

In the case of critical illness cover, the financial aid is provided as a lump sum to you or your family members as a one-time payment. This money can be used for paying  bills, making mortgage repayments until you recover, and meeting unexpected financial emergencies.

These were some of the most common insurance policies that homebuyers prefer while buying a new house in the UK. They help you protect your house as well as your loved ones living in it. Depending on your needs and preferences, you can choose the type of insurance and cover that would best suit you and your family as you buy a new home in the UK.