Buildings insurance is a mandatory requirement by mortgage companies to protect their joint asset. Most homeowners also choose to add contents insurance in order to protect their valuables should the worst happen. Many insurance companies offer premiums purely based on monthly premium rather than a tailored solution to match your needs – this could lead to you being underinsured
Should you need to make a claim, it’s important that you’re not under insured. If you had £20,000 of contents insurance cover and after making a claim the insurance assessor find that you contents insurance is not sufficient, the insurance company will not pay the total amount of your claim as you are under insured, and will reduce the amount they will pay out accordingly.
Its important to consider the in’s and out’s of an insurance policy especially any hidden exclusions that could come back to bite you should you need to make a claim.
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The Financial Conduct Authority does not regulate some forms of buy to let mortgages
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