Home Buyers Guide

Chapter 8: Insurance

Insurance for home owners...cont:

Mortgage Repayment Protection Policy
Also known as accident, sickness and redundancy insurance.

Mortgage repayment protection insurance will cover you if you are unable to work because of forced redundancy or ongoing sickness, for a specified time, such as 12 months, or until you return to work.

Generally, it will pay out a specified amount to cover your mortgage payments, although with some policies you can increase the insurance to cover other expenses, such as car finance, personal loans etc.

There are exclusions and lots of conditions with these policies, so check out what you are covered for before you take one out.

It’s Important to Shop Around:

While mortgage protection (life insurance) and house insurance (structural cover) are required by legislation for owner occupiers, you do not have to take this insurance out with your mortgage lender. Banks and Building Societies are generally tied to one insurance company (often one they own), so may not offer the cheapest cover. In some cases, people can save thousands of euros over the course of the mortgage, by shopping around for cheaper insurance with another insurer.

You should speak to a mortgage broker or insurance broker or do some research yourself.

Important Notes:

The general information contained above gives a broad idea about the types of insurance available. It is very
important to confirm with your broker or insurance provider exactly what you’re covered for as coverage varies from one insurance company to another, and from policy to policy.

Make sure your insurance adviser outlines the ‘reasons why’ they are recommending a type of insurance cover in writing (they are required to do this by the Financial Regulator).

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