Click below for a cheaper quote on ...
British Insurance launches shared ownership PPI
Wednesday, 06 Aug 2008 15:54
British Insurance is launching a specialist mortgage payment protection insurance (MPPI) policy for households involved in shared ownership schemes.
The policy is aimed at people part-purchasing a property and pays out – as with standard MPPI policies - monthly mortgage repayments should accident, sickness or unemployment occur, but also the rental payments on the property paid to the co-owner, often a housing association.
Simon Burgess, British Insurance managing director, said: "All householders should be able to protect the payments they make and keep their home, whether it's those with mortgages or those with rent and buy agreements via housing associations.
"Insurers have traditionally offered this financial safety net to people meeting a certain criteria, excluding people on lower incomes in social housing, who are more financially vulnerable."
He added the demand for such insurance policies was set to grow as the number of shared ownership schemes escalates.
Mr Burgess concluded: "I hope this will encourage other insurers to follow suit and become more socially responsible - we all have a duty of care to help everyone keep their homes in times of economic uncertainty."