Re: is house insurance compulsary for owner occupier
Home building insurance is for the bricks and mortar. If the house burns down the insurance covers the cost of rebuilding it. Most owners would have this insurance whether the house is mortgage free or not. If a mortgage is taken out on a fully owned home the lender would require you to have building insurance in place. They would also require mortgage/life insurance be put in place to protect themselves in the event of the borrowers death. To my knowledge building insurance and contents insurance are two different products but are sometimes sold together as a home and contents package.