Do you understand a mortgage insurance policy?
- 20TH OCTOBER 2007
Even though changes have been made for the better since an investigation into the sector began in 2005 after the Office of Fair Trading received a super complaint from the Citizens Advice, many homeowners and potential homeowners are still confused when it comes to a mortgage insurance policy. After the revelation that mis-selling was wide spread the amount of mortgage payment protection insurance (MPPI) policies sold dropped. This has left many homeowners without any plan to fall back on if they should lose their income through being out of work due to an accident, sickness or unemployment.
Without any plan in place such as a mortgage insurance policy, homeowners are putting the roof over their head at risk unnecessarily, because providing a policy is bought correctly and you understand it, then it can be a lifeline. A policy could begin to give you an income with which to carry on paying your mortgage each month after you have been out of work for a defined period of time. Payout can begin from the 31st day if you take a mortgage insurance policy from standalone providers British Insurance but can take as long as 90 days before it kicks in with other providers. However once it has started to give you an income it would then continue for up to 12 months and with some providers this is extended for up to 24 months.
British Insurance makes sure that you understand a mortgage insurance policy by giving you the advice you need in plain English along with the exclusions in a mortgage insurance policy. It is the exclusions which stop you from claiming and some of the most typical include suffering from a pre-existing medical condition, being of retirement age, self-employed or if you haven’t got a full time job. While of course these are only a few you have to check out the small print and key facts of a mortgage insurance policy to be sure that this invaluable cover would be suitable for your particular circumstances.
