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Are you always on time? Some of us become irate when we are a minute late for work, a business meeting, or a rendezvous with friends or relatives. Others of us would be late for our funerals. Regardless of how punctual we are, our lifestyles have become increasingly more fast-paced. In the click of a mouse or the touch of a mobile phone screen, we can send and receive up-to-the-minute information. In this Information Age that we live in, the timeliness of information exchange is as important as the information that is swapped.

However, as one old adage reveals, the more things change, the more they stay the same. While the methods for paying UK mortgages have changed, the fact that we must make payments until the balance is zero—has not. Even when we have the best intentions and give the best efforts to make our mortgage payments on time, sometimes we fail.
Here are some tips to help you choose the best mortgage insurance:

1. Understand how mortgage payment protection insurance (MPPI) functions
Securing this type of UK insurance is not mandatory when you take out a mortgage. However, if you become the victim of redundancy at your workplace, become suddenly very ill, or experience a major accident—then mortgage payments insurance can become quite useful. You might also see MPPI under the names of:

•    Accident Sickness and Unemployment Insurance
•    Payment Care
•    Payment Cover

The most important matter when considering MPPI is the exclusions. Finally, you can take out MPPI anytime—not only when you take out a UK mortgage.

2. Remember that cheaper is not always better
It might seem logical that the cheapest MPPI policy is the best one for you. However, you should learn what conditions under which policies pay out, to determine exactly how much you would be entitled to.

3. Learn how soon you can make claims.
The number of days of work you must miss prior to your becoming eligible to make claims varies for different policies. This can range from one day to 60 days, so when comparing different policies it is important to learn this information.

4. Learn about exclusions
Several exclusions can exist for those who take out an MPPI policy. Thus, it is important to learn which exclusions the insurer applies, to determine the percentage of potential claims for which you would not qualify. In some cases you could be ineligible for half of them!

As with securing buildings and contents insurance, you should learn about the premiums. This will indicate:

•    The mount of cover that the policy provides
•    The policy’s exclusions
•    The overall marketing strategy of the insurer

5. Compare MPPI and Permanent Health Insurance (PHI)
You may not need MPPI!

6. Learn exactly how much cover the MPPI includes
Typically, MPPI providers will only give you a quote that includes cover for making your mortgage repayments each month. However, it is advisable that you also get cover for home and contents insurance, mortgage life insurance, and an investment plan (if you have an interest-only mortgage).

7. Distinguish MPPI from Mortgage Indemnity Insurance (MIG)
It is important to realize that MIG differs from MPPI. MIG is actually for the lender, in the case that you sell the house for less than the loan’s value.

In addition to time not being on our side when we need to make mortgage payments, our homes can quickly become damaged, the items in them can be stolen, etc. Thus, it is also important to consider securing building and contents insurance. Here are some tips to select such insurance:

1. Shop around for buildings and contents insurance
In the past, Britons tended simply to secure Buildings and contents insurance from their mortgage lender. However, as with life insurance and mortgages, the Internet has made it significantly easier to shop around. Thus, instead of spending countless hours making countless calls, you can easily surf the Net to compare prices. Ultimately, getting buildings and contents insurance quotes from multiple insurers could save you thousands of pounds. 

2. Never under-insure the contents of your home
While over-insuring will mean that you spend too much money on insurance, under-insuring means that it will be much more difficult to replace items in your home that fire has destroyed, etc. Avoid having any regrets! In particular, it is important to secure hard-to-replace items, such as antiques, expensive artwork, etc. Get an independent evaluation for high-value items, to ensure that you know the true values.

3. Be careful about "blanket cover" packages
Some UK insurance companies offer these types of packages to Britons. The main problem with such packages is that they are based on the number of rooms in your home, rather than the contents inside them. Thus, in the end you could spend significantly more on buildings and contents insurance.

4. Remember that rebuilding is different from building
When determining how much buildings and contents insurance to take out, remember that the costs for rebuilding are not equal to your home’s market value. This is as important as getting mortgage payment protection quotes. In fact, oftentimes the rebuilding costs for UK homes are less than 50% of their market values. For instance, the rebuilding costs do not include the land’s cost. It is important to consult a buildings and contents insurer about this matter, before you take out insurance. 

5. Inventory all items in all rooms
It is important that you inventory all items of value in your home. You can achieve that objective by systematically walking through each room and cataloging their contents. It is vital that you leave no stone unturned, and no item un-inventoried.

Living in the information Age has sped up the rate at which we can exchange information. After taking out a mortgage, you should also consider taking out MPPI and home insurance. Because the future is uncertain, take the time to insure your home and your ability to buy it. That is time well spent!

Tags: Mortgage payment protection quotes | Mortgage payment protection quotes | Buildings and contents insurance | Life Insurance and mortgages | Life Insurance and mortgages | Mortgage payments insurance | Mortgage payments insurance | Home insurance | Home insurance

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This entry was posted on Saturday, September 12th, 2009 at 2:29 pm and is filed under Real estate for sale. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.