Protection Against Life’s Curveballs
If you own your own home or are considering buying your first property, you must consider protecting it. After all, it’s what protects you against the elements. Even if you’re renting, it is essential to think about protecting your tenancy. Have a read of our blog with some valuable tips.
Always have an emergency fund
Your emergency fund will cover minor issues and insurance excesses if you’re a homeowner. If you’re a renter, you should ideally have enough money to cover a deposit on a similar property and moving costs to it.
In either case, you should also have enough money to cover unexpected expenses in other areas of your life. These might not be directly related to your housing but could impact your ability to pay your mortgage or rent.
Take insurance seriously
It’s great to have an emergency fund. Realistically, however, the average person will not be able to put aside enough of an emergency fund to cover serious expenses. As a rule of thumb, if something could create significant legal or medical bills (including vet’s bills), then you should at least consider insurance for it. This includes human medical bills for completeness as this will give you options outside the NHS.
You should also consider serious repair bills and if there’s any way you can be exposed to third-party claims for damages. For example, cyclists and pet owners should consider insurance to cover themselves for potential damage claims.
Homeowners should consider buildings insurance, possibly outbuildings insurance, possibly accidental-damage insurance and contents insurance. Renters should look at having their contents insurance.
Last but not least, you should think about protecting your finances. There are policies to assist; speak to an adviser to find the right one for your circumstances.
Insurance and Employment
Your employment status may have implications for your insurance cover. For example, some types of insurance may only be available to employed people.
Likewise, some employers may provide some types of insurance to their employees. For example, many employers offer death-in-service cover. Technically, this is not life insurance; it’s relevant life insurance. However, the end effect is the same from an employee’s perspective. If you die, your designated beneficiaries will receive a payout.
Be aware, however, that the insurance you receive from your employer may not be sufficient for your needs, let alone your wants. Therefore, you need to do your calculations and, if necessary, top it up. Similarly, you’ll need to arrange cover for anyone not employed, even if they’re not directly earning an income.
In particular, it’s vital to have suitable insurance for homemakers. If anything happens to them, you need to pay someone else to do what they do without payment. You will quickly discover how expensive this can be, particularly if they have caring responsibilities.
Take care of your credit record
Your credit record will be considered if you need to get a mortgage. This includes remortgaging. Many landlords will check it as part of their tenant-vetting process. Some employers check it as part of pre-employment due diligence.
Managing your credit record doesn’t usually require a great deal of effort. It amounts to paying all your bills in full and on time, avoiding taking on excessive debt and ensuring all information is complete and accurate. You should check your credit file at least once a year to see if there are any mistakes. If there are, get them corrected as quickly as possible. Please do not ignore them until you want credit.
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