Mortgage Paid Off Dont Forget to Keep Paying for Home Insurance

Making that final mortgage repayment is a true red letter day, but be aware that in doing so, you may also be making your last home insurance payment - which could leave you open to all kinds of risk. As home buyers are invariably required to take out buildings insurance as a condition of a mortgage, once the mortgage is paid off, that requirement no longer remains. And although it makes good sense to maintain buildings cover, some homeowners (unintentionally or otherwise) allow their cover to lapse.How home cover sometimes gets cancelledThis remote controlled air swimmers tends to happen with homeowners who took out buildings insurance from their mortgage provider and paid both mortgage and insurance in one bundled monthly repayment. Once the Air Swimmers mortgage is paid off, because payments are bundled, the buildings insurance payments also stop - yet the risk of fire, structural damage etc still remains.Also, if the homeowners took out combined buildings and contents insurance, the financial risks are increased as they would also become liable for the cost of replacing broken, lost or stolen home items.Here's a reminder of the benefits of keeping your home insured...Benefits of home insurance If your home is destroyed or damaged, or the contents within ruined or stolen, you can seek compensation to carry out repairs or buy replacements. Home insurance breaks down into two categories: buildings and contents.What is buildings insurance?Buildings insurance covers damage to structure, fixture and fittings of your home. A policy can also cover outbuildings. A comprehensive buildings insurance policy could cover you for: * Fire * Lightning strike * Storm damage * Falling trees * Explosion (caused by gas leaks etc.) * Earthquake * Damage through contact with a vehicle or vandalism * Bursting or freezing of the plumbingAlso, flood cover upgrade can be arranged for those living in a high-risk flood area.Top tip: Don't over insure - buildings insurance is only required Flying angry bird to cover the cost of rebuilding your home, not its market value. You can find out a home's approximate rebuild cost by using a rebuild calculator.What is contents insurance? Contents insurance can be taken out to cover items within your home against loss, breakage or theft. Typical items that can be covered include: * Carpets * Furniture * Ornaments * Jewellery * Electrical appliances * DVD/music collections * Antiques * Valuable collectionsTop tip: Avoid under or overestimating the total worth of your possessions.