When should you have your home insurance ready?

Once your property’s valuation is complete, you’ll receive a formal offer letter outlining the remaining prerequisites to fulfill before receiving your mortgage funds.

The main requirements typically include obtaining mortgage protection insurance and home insurance.

To ensure a smooth process, it’s advisable to arrange your home insurance promptly after receiving an up-to-date valuation.

Why is having home insurance important?

Lenders insist on having home insurance in place before authorizing your mortgage disbursement. This insurance guarantees that if the property is damaged, such as by fire, it will be repaired or rebuilt.

Since the lender uses the property as collateral for the loan, they want to ensure its sustained good condition.

In the case of purchasing an apartment, this is often referred to as ‘block’ insurance, where a single policy covers the entire building.

How can I secure home insurance?

Obtaining your home insurance is typically straightforward and efficient, with the process largely conducted online.

The key is to secure the most cost-effective quote possible.

Engage a broker who can explore the entire market, considering that this insurance will likely be in effect throughout your mortgage term.