Home, Life and Mortgage Protection Insurance

Mortgage protection insurance, also known as MPPI (mortgage payment protection insurance), is a type of insurance you can get in the UK that’s designed to cover your mortgage payments if you die during the term of the mortgage. This kind of insurance provides peace of mind by ensuring that your family and their home is protected, even if circumstances change unexpectedly.

One of the key features of mortgage protection insurance is that it typically has fixed premiums, meaning the amount you pay each month remains constant throughout the policy term. This stability helps with financial planning and ensures there are no unexpected increases in your insurance costs.

Moreover, the coverage amount of a mortgage protection policy usually decreases over time, reflecting the decreasing balance of your mortgage as you make repayments. This decreasing potential payout amount makes MPI a cost-effective option compared to other types of insurance as the overall premiums are typically cheaper.

Life insurance is a contract between you and an insurance company that provides financial protection to your beneficiaries in the event of your death. This form of insurance is designed to offer peace of mind, ensuring that your loved ones are financially secure even after you are no longer there to support them.

Choosing the right life insurance policy requires careful consideration of your financial situation, goals and the needs of your loved ones. At John Charcol, our experienced advisers can help you navigate the complexities of life insurance, ensuring you make an informed decision that provides the protection and peace of mind you need. 

For UK residents, understanding the various options and potential pitfalls of life insurance is crucial. Our team is here to offer guidance, compare policies and find a solution tailored to your unique circumstances. 

Let us help you secure your financial future and protect those who matter most.

Building insurance is a mandatory requirement that all lenders look for when arranging a mortgage, regardless of whether you’re buying a property or remortgaging. When purchasing a leasehold property this may already be covered by the monthly or annual maintenance charge. If you are purchasing a freehold property it’s likely that the buildings insurance will need to be covered by you and you will need buildings insurance in place for the exchange of contracts.

Building insurance covers the fabric and permanent fixtures of your home, such as: the roof, walls, ceilings, floors, doors and windows, fitted kitchens, built-in cupboards and bathroom suites. A standard buildings insurance policy should cover the full cost of repair or a full rebuild in case of: a fire, lightning strike, storm damage, gas explosion, falling trees, earthquake, vandalism, vehicle collisions with the building or bursting of the plumbing.

Aside from building insurance it’s also important to ensure that the contents of your home is insured. Contents insurance isn’t compulsory, but it offers homeowners valuable protection for their belongings in the event that they were stolen or damaged.

Contents insurance covers your possessions against loss or damage by theft or attempted theft, fire, explosion, lightning or earthquake. It will also insure against water leakage, storm or flood damage. The ‘contents’ of your home is defined by insurers as the sort of things you would take with you if you were to move house so it includes items such as furniture, clothes, electrical items, money and jewellery. Contents insurance may also covers some fixtures such as carpets and curtains.

When arranging contents insurance you set the maximum level of cover the policy will pay out if, for example, the contents of your home are completely destroyed, so it is important to make sure you have the right level of protection. Many of us do get this figure wrong and experts estimate that one in five households could be underinsured because they do not know the true value of their home contents.

Download our home contents checklist to ensure you get the level of cover that’s right for you

Many price comparison sites only offer ‘standard’ insurance policies and won’t necessarily take your personal circumstances and needs into account. Equally, because comparison sites don’t provide one on one advice, you could be left with unanswered questions or worst still be unaware that you are underinsured or unable to make a claim because of small print or legal complexities you weren’t aware of during the application process.

By arranging your home insurance through John Charcol, you can ensure that you speak directly to an expert who can guide you through the process and ensure that the policy you are being sold is right for you and your individual circumstances.

Our in-house team of expert insurance advisers are in regular contact with your mortgage adviser allowing us to ensure that your policy is set up at the correct point in the process.

Your adviser will make sure your property is insured for the full rebuild value, as well as arranging cover for the contents of your property, including personal valuable items you take away from home such as jewellery, laptops and mobile phones.

Now we’ve covered life insurance and mortgage protection, what other types of cover can you get? See below for resources on family income benefit, income protection and critical illness cover!