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Home Buyers Finance Guide V2

What if? The importance of insurance Insurance is an important part of the home buying process. Most lenders require evidence of a house insurance policy before they will advance the loan. We also recommend that you give serious consideration to risk insurance, to protect yourself and your loved ones should something go wrong. Mortgage Express can help you with the following forms of insurance: House and Contents insurance • House: Covers your house if it is damaged by fi re, earthquake, fl ooding, burglary or other event. • Contents: Covers damage and loss of your belongings, often including ‘third party’ cover if you damage someone else’s belongings in the house you are living in. Risk insurance • Life: Provides a lump sum of money if you die. You can apply for different levels of life insurance, which will cover you for a fi xed number of years (for example, the length of your mortgage), or whole of life policies. • Health: This insurance will protect you if you become sick or injured and are unable to work. Health insurance can provide cover for things like critical illness, disability and medical bills. • Mortgage insurance: will pay for your mortgage repayments if you cannot work. • Income protection insurance: to protect your income on an on- going basis. Adviser tip: “It may seem unthinkable, but premature death or illness does happen. Risk insurance is an investment in your family’s future, and while we can’t plan for everything, we can do our best to make sure we’re as prepared as we can be. I urge all my clients to seriously consider taking out some level of risk insurance.” Since the Christchurch earthquakes, insurance has become a complicated (and expensive) trap for the unwary. The industry uses a lot of jargon and terminology that can be daunting, seemingly like a new language that must be learnt. Mortgage Express has specialist insurance advisers who can walk you through the process, clarifying and explaining your options at every step of the way.


Home Buyers Finance Guide V2
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