Why you should think about home insurance at remortgage & product transfer

Don’t Overlook Insurance When Remortgaging

If your current mortgage deal is coming to an end or you’re looking to raise cash through a remortgage, you’re probably focused on one thing – getting the best possible rate. This is expected in a mortgage market as volatile as today's, with rates going up and down in response to economic conditions. Still, it’s important not to lose sight of other important considerations while going through the process.  

When the time comes to remortgage and product transfer, you’ll likely be considering whether any of your personal circumstances have changed since you last secured a mortgage. Has your salary altered? Have you paid off a loan or credit card? Do you have childcare costs? Lenders will consider aspects like these to assess your borrowing power and ensure you can afford to keep up with future monthly payments. 

However, as well as financial fluctuations, you should also think about changes to your home itself. You may have made changes to your property and its contents throughout the term of your mortgage. Perhaps you’ve had an extension, built a garden office or treated yourself to a hot tub – this is because it’s also the perfect time to review your home insurance to ensure you still have the right amount of cover following any home improvements or expensive purchases. If not, you might leave yourself underinsured, meaning you selected a lower amount of cover than the total value of your belongings or the rebuild cost of your home.  

Underinsurance & life events that may impact your cover

Being underinsured leaves you wide open to serious financial risk. If you come to make a claim, it could be reduced by the proportion you’re not covered for, meaning you may have to pay the difference to make repairs or replace damaged items – an extra level of stress you don’t need in the event of making a claim.  

Other common changes that may impact your buildings and/or contents insurance needs and leave you with too little home insurance cover include: 

Routinely reviewing and updating your insurance policies is a good habit for any homeowner, and events such as remortgaging provide the ideal opportunity to do so.  

Getting Support from a Financial Adviser

Speak to your professional financial adviser during the remortgage or product transfer process for support with updating your policy. They can explain the unforeseen and sudden events you're covered for, discuss optional extras and help you review your cover to explain what you are and aren't covered for, so you know how the world of home insurance works. Your home is your most valuable asset, so while you’re focused on finding the best mortgage rate possible, also take the time to make sure it’s fully protected.