Home Insurance

Protecting your Mortgage payment

Buying home insurance is one way of protecting your property against the unexpected, and in doing this you are making sure that events like flood, fire and theft don't destroy your property and your investment in it, but there are other threats to your home that are just as dangerous, but less tangible. What would happen to you if because of an accident you were unable to work?

There are a number of factors to consider here:

• How long will you continue to receive full pay from your company?
• What happens if you're self employed and cannot work?
• What benefits are you entitled to?
• If you have a partner would their income pay the mortgage and bills?

After an accident it could take you a while to get back on your feet, so how will you pay the mortgage while you recover? Long term sickness or an unexpected period of unemployment can pose similar problems - suddenly the outgoings to your mortgage lender can become a problem when the income stops coming in, or is severely reduced. If you cannot keep up payments on a mortgage the lender can repossess your home and sell it in order to make good the debt they are owed - not a pleasant proposition when your struggling after an accident, sickness or unemployment. It is possible to protect yourself against this situation, you can insure your mortgage payments against you not being able to work. This means if you become unemployed, are sick or have an accident the insurance company will pay either the whole of, or part of, your mortgage.

Typically cover will kick in after 30 days, but some firms offer what's called a 'back to day one' policy which means that they only pay out after 30 days, but they will pay you for the whole time you've been unable to work - it's worth looking around to see which providers can offer this enhanced version of mortgage protection. Once started mortgage protection policies normally pay out for a maximum of 12 months, and they almost always have an exclusion period in them, which means you cannot claim in the first 'x' number of days.

Protecting your mortgage payments can be a huge weight of your mind — it means that, in conjunction with your home insurance, whatever happens to you, you know that your home is safe and protected. You can get a mortgage protection quote by clicking here

Many people naturally have a 'it wont happen to me' attitude, but this feeling of invulnerability is not entirely sensible, at least if your mortgage payments are insured you know that your house isn't going to be repossessed if you cannot work for a while, most online providers of mortgage protection insurance offer discounts if you buy online.

You can find out more about mortgage payment protection insurance here: www.vivid-mortgage-protection.co.uk