{"id":580234,"date":"2026-09-11T12:49:59","date_gmt":"2026-09-11T11:49:59","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=580234"},"modified":"2026-09-11T12:49:59","modified_gmt":"2026-09-11T11:49:59","slug":"what-insurance-do-i-need","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/mortgages\/first-time-buyer-mortgages\/what-insurance-do-i-need","title":{"rendered":"What insurance do UK first-time home buyers need?"},"content":{"rendered":"

When you move out of your parents’ home, leave a rental property, or return from abroad – buying a house and getting a mortgage comes with added responsibility that’s worth some added protection. While most first-time buyers<\/a> focus on deposits and passing affordability checks, it’s crucial to remember that illness, injury, or death doesn’t mean you can skip future mortgage payments.<\/p>

Lenders require certain insurance but personal protection policies are optional yet highly recommended for some first-time home buyers. Arranging cover doesn’t need to be complex either, modern mortgage brokers like Habito (part of Monzo)<\/a> or L&C<\/a> can sort out insurance that’s tailored to your situation. Here’s what you should know about finding the best deals from top home insurance providers and figuring out the protection you need.<\/p>

First-time home buyer insurance at a glance<\/h3>

When it comes to home buyers insurance, it’s important not to bury your head in the sand. Luckily, these days arranging policies is extremely straightforward and can be affordable. Plus, there’s a range of top home insurance mortgage brokers that can find you a great deal. <\/p>

For example, there’s Habito by Monzo<\/a> which has an Excellent 4.9 star rating on Trustpilot from over 10,000 reviews, and more traditional brokers like L&C Mortgages<\/a> which has a slightly lower 4.6 stars from around 18,000 reviews (correct as of August 2026).<\/p>

Home buyer insurance <\/th>Is it mandatory?<\/th>Primary purpose<\/th>Best for<\/th><\/tr><\/thead>
Buildings insurance<\/th>Yes (required by lenders)<\/td>Covers structural damage to the property (roof, walls, permanent fixtures).<\/td>All mortgage holders (required before exchange).<\/td><\/tr>
Life cover<\/th>Optional<\/td>Pays a tax-free lump sum or income to pay off your mortgage if you pass away during the policy term.<\/td>Joint buyers, couples, or anyone with financial dependents (like children).<\/td><\/tr>
Critical illness cover<\/th>Optional<\/td>Pays a lump sum upon diagnosis of specific severe conditions (e.g., cancer, stroke) that can be used towards your mortgage.<\/td>Anyone without substantial savings to cover long-term treatment or mortgage payments.<\/td><\/tr>
Income protection<\/th>Optional<\/td>Replaces a portion of your monthly wage if you can’t work due to illness or injury.<\/td>Single buyers, self-employed workers, or employees with limited sick pay.<\/td><\/tr>
Contents insurance<\/th>Optional<\/td>Covers personal belongings inside the property (furniture, tech, clothing, etc.).<\/td>Homeowners looking to protect against theft, fire, or flood.<\/td><\/tr><\/tbody><\/table><\/div>

Property insurance: The baseline<\/h3>

Before looking at personal protection as a first-time home buyer, it’s important to secure your property foundation.<\/p>

Buildings insurance<\/h4>

UK lenders typically require buildings insurance as a contractual condition of releasing your mortgage funds for your property purchase.<\/p>

It covers structural rebuilding costs following fire, storm damage, subsidence, or severe leaks.<\/p>

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\n \n \n <\/use>\n <\/svg>\n <\/span>\n Hot tip<\/span>\n <\/h4>\n
\n Cover must be active from the date you exchange contracts, not completion day, because you become legally responsible for the building once contracts are swapped.\n <\/div>\n <\/div>\n<\/div>\n

Contents Insurance<\/h4>

While not mandatory, contents insurance protects the insides of your new home, meaning everything not fixed to the structure (things like furniture, electronics, personal items). <\/p>

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\n \n \n <\/use>\n <\/svg>\n <\/span>\n Hot tip<\/span>\n <\/h4>\n
\n Always check limits for individual items and look to bundle it in with your buildings insurance for a multi-policy discount.\n <\/div>\n <\/div>\n<\/div>\n

Personal protection: Insurance for your mortgage repayment<\/h3>

Various types of personal protection insurance ensures that as a first-time home buyer, your mortgage still gets paid if your financial or personal circumstances change unexpectedly.<\/p>

Below are the main different types of home insurance for first-time buyers with a mortgage.<\/p>

Life Cover<\/h4>

Life insurance pays out a (typically) tax-free lump sum if you pass away during the policy term, preventing your estate (e.g. surviving family) or joint applicant (anyone else on the mortgage) from defaulting on the outstanding debt. <\/p>

Unfortunately, if you pass away, your mortgage debt doesn’t simply vanish, it potentially becomes an extremely costly burden for your family, relatives or friends at what will already be a difficult time. <\/p>

Here are the key types of life insurance policy structures and how much cover is worth considering for first-time home buyers:<\/p>