Remortgage Combined with Home Insurance
Many remortgage and mortgage lenders offer homeowners insurance in their loan package. This is advantageous for a couple of reasons:
1) It is automatically paid with your monthly remortgage payment, because it is actually part of your remortgage payment. So you never have to worry about missing an insurance payment. 2) Not having a separate payment makes it easier to keep up with your other expenses and more easily plan a budget. There are typically three types of home insurance coverages to add to your remortgage policy. The insurance company of your choice will make arrangements with your lender to receive payments from them to cover the premiums. Whether you have the insurance included with the remortgage or not the lender will require you to carry the home insurance so allowing it to be included in your payment allows them to confirm the premiums are being paid. Building coverage insurance protects the actual building or structure. The level of coverage for this type of insurance varies between companies. Building coverage is applicable to any damage to the structures or in the case of a total loss. Contents coverage is insurance which covers personal property located within the building or external structure. Things like electronics, jewelry, furniture and clothing are included in this coverage. Extra coverage can be added to a policy to include things like plumbing emergencies, electrical wiring problems and other similar issues. This type of coverage is valuable because it gives you peace fo mind that many problems typical to home ownership will be covered. People usually assume that extra coverage type issues are covered under the building coverage insurance policy. This is not the case. Play it safe and always consider extra coverage when considering homeowners insurance. Make sure to read all the fine print on any insurance type you are considering. Also, speak to a remortgage specialist to determine what type policy is best for you