Mortgage Insurance Protection What is it?

Mortgage insurance protection insurance, or MPPI as it is commonly known as, is without a doubt the most crucial form of insurance that a property owner will ever purchase. For almost everyone, their home is going to be the most valuable single thing they ever buy, so it really does make an awful lot of sense to make sure that this valuable item is protected by a robust and highly effective insurance policy.

The number of repossessions in the UK has grown severely over the last few years. In many cases, the repossession could have been avoided had the owner been covered by an adequate amount of mortgage insurance protection. It is in the best interest of every home owner to make sure that their property is fully covered, and protected from repossession by the lenders.

Unemployment is an ongoing problem in the UK, and it must be emphasised that everyone, regardless of the job of work they perform or which particular market sector they are employed in, needs to make sure that their property is going to be safeguarded if they should lose they job for any reason. In a similar fashion, we never know when we are going to be affected by a serious illness or fall foul of an accident which leaves us unfit for work, so making sure you have enough mortgage insurance protection makes triply good sense.

What does Mortgage Insurance Protection Cover?

Mortgage insurance protection will typically provide insurance cover for three distinctly different situations. Firstly, there will be accident cover, this is in place to make sure that if you were to be involved in a bad accident, which left you unable to work over either the short term or long term, your mortgage repayments would be met. The second part of the cover is in case of sickness, if you were to become ill for an extended period, with no income, then the insurance policy will make sure your monthly mortgage payment is made. Finally we have the unemployment part of the policy, in place to make sure that if you lose your job through redundancy, your home repayments will still get paid.

Most policies will be offered with a selection of possible terms of claim; the most common of these are 12 and 24 months. This claim term indicates the longest period that you can receive benefit in a single claim. Your policy may also stipulate a 30 day no claims period, which means you cannot make a claim within your first 30 days of sickness or unemployment. Most often there will also be a “back to day one” clause, meaning that once a claim is made after the 30 day waiting period, then the claim will be back dated to the start of the waiting period.

The mortgage insurance protection market has become more and more completive, and insurance providers now offer a range of well featured and affordable products, making mortgage insurance protection accessible to all.

Enhanced Wealth offers an award winning mortgage insurance protection policy from British Insurance.