What insurances do I need?

That is unless the property is leasehold, when the building is covered under the freeholder’s insurance policy.

This is because the property becomes your liability from exchange of contracts and if you do not insure it and the seller decides to cancel their policy the property would not be covered if it burnt down or a lorry went through the front wall!

You may end up with a pile of rubble and nowhere to live. You can set up insurance with a broker before exchange of contracts and then just ring to ‘put it on risk’ once exchange of contracts has taken place. Contents insurance can take affect from completion.

If you are having a mortgage you would also be advised to have payment and life insurance. Firstly this would cover the monthly mortgage payments in the event of you being ill and unable to work or being made redundant and unable to make your payments.

However, this is not indefinite and you should check with the insurance company how many payments they will make.

Secondly, life insurance is what it says and should pay off your mortgage if anything happened to you and would protect your family so that they do not loose their home.

If your mortgage is an interest-only mortgage you must ensure that you have some form of repayment vehicle set up so that the capital sum is repaid at the end of the mortgage term otherwise the property may have to be sold to pay off the lender.

Do not skimp on your insurances. You may regret it in the end.

If you have any questions or queries relating to this article please contact Barbara Brown-Campbell at the Bognor Regis office of Owen Kenny Partnership, on 01243 864865 or Janette Luker at our Chichester office on 01243 532777.