AA Insurance has launched a mortgage protection for homeowners covering them against accident, sickness and unemployment.

The policy, AA Mortgagecare, starts at £5.75 per £100 covered and also features a no-claims bonus. Every year, a 5% reduction on payments is made, up to a maximum of 25%.

AA head of retail finance Gill Edge said: "People don't think twice about insuring the structure of their building and its contents but they rarely protect the payments on the most expensive purchase they ever make."