In the current economic climate, finding suitable protection for your home and possessions is essential. Analyst Defaqto compares the products available.
As consumers we are teetering on the edge of a mountain of consumer debt that has been increasing at an unprecedented rate. Recently the Bank of England highlighted the lack of savings possessed by most households, a fact that serves to lessen the ability of homeowners to absorb negative changes in their income.
On top of a list of assets to protect must be the home we live in. For those among us who pay a mortgage the most common method is mortgage payment protection insurance. The large number of households that have no savings, coupled with the large section of the population that do not purchase contents insurance, does mean that a theft loss, for instance, could have a major effect on the lifestyle and financial equilibrium of the uninsured.
Defaqto examines MPPI policies from the market and contents policies available from banks and building societies.
Household contents insurance
An often-neglected area of protection is that of the contents of the home. Defaqto has examined a range of products available from bancassurers and building societies that non mortgage holders can choose from. The features chosen include the basic elements of cover for contents without the usually optional full personal possessions cover. Ahead of the field on the features chosen are Halifax with its product underwritten by Royal & SunAlliance and available in branch.
Areas where the Halifax product excels:
Areas where the Halifax product lags behind some other providers in the market
Mortgage payment protection
With house price increases outstripping salary increases in most places around the country, the burden of a mortgage to a new house purchaser can be a scary prospect. Couple this with the demise of the UK manufacturing industry and the increasing migration of service based jobs to foreign climes, you could justify the purchase of insurance from an unemployment perspective alone. Defaqto compares policies that provide full accident, sickness and unemployment cover.
Key features of the Natwest Mortgage Repayment Protector:
Areas where the policy falls below the best in market