Mortgage cover could mean the difference between you losing the roof over your head or keeping it if you were to become ill and unable to work, suffer an accident or become unemployed by such as redundancy. The downside to the cover is that it is not suitable for all circumstances due to the exclusions which exist in all policies.
Common reasons which could stop you from being eligible to make a claim include if you are only working part time, suffering from an ongoing illness or if you are retired. Other exclusions could be added on by the provider so you do have to check the terms and conditions of the policy before you buy the cover to make sure that you would be eligible to make a claim.
Homeowners who rely on the State to help if you come out of work are leaving themselves open to disappointment and are putting the roof over their heads at risk because the State does often not give enough financial assistance even if you are entitled to receive help. If you get behind on your mortgage then you risk losing your home to repossession. However, mortgage cover can stop this by giving you an income once you have been out of work for a set period of time.
The time varies that you have to wait but is usually from the 31st to the 90th day after the event and once a policy has begun to payout it would then continue to do so for between 12 and 24 months which gives you enough time to get back on your feet or find another job.
Mortgage cover has been branded with the same bad image as loan payment protection and while mis-selling has occurred in all sectors mortgage insurance has faired better. However on saying this, the latest firm to not only receive a fine but also have the Chief Executive handed a personal fine was a mortgage firm. This is even more astounding when you realize the fine handed out was just recently and well after the Financial Services Authority set out guidelines for improvements that had to made to the sector.
Problems for the sector began in 2005 after the Office of Fair Trading (OFT) received a super complaint from the Citizens Advice Bureau. This resulted in the investigation by the Financial Services Authority (FSA) which led to several high street names receiving fines before the OFT referred the sector on to the Competition Commission. The latter is now conducting an in-depth investigation with the results of their findings anticipated in early 2009.
If you want peace of mind that you have quality mortgage cover whilst also getting the cheapest premiums for the cover then you have to get a quote from an independent specialist provider of payment protection. A specialist will be more ethical than the high street lender and will not go for the huge profits that high street lenders rake in each year, they will ensure that you have access to the key facts needed to determine if a policy is suitable.