Mortgage payment protection insurance (MPPI) specialist Median Insurance Management has designed a MPPI plan that includes up to £500 free cover for emergency house repairs where full accident, sickness and unemployment cover is taken.
Smartgard was created specifically for intermediaries and is available to both existing homeowners and new mortgage customers. It provides full accident sickness & unemployment cover at the cost of £4.95 per £100 of monthly benefit. The free home emergency cover is intended to help with the cost of repairs such as plumbing and central heating. Another feature is a no claims bonus that applies after 24 months and this increases the policy benefit by 10 per cent free of charge.
The plan also allows policyholders to choose accident & sickness cover only or unemployment only cover. The monthly premium for both options is £3.25 per £100 of monthly benefit. The maximum monthly benefit is £1,500 or 125 per cent of the monthly mortgage payment. All benefits are paid up to a maximum of 12 months and there is a waiting period of 30 days. However, policyholders are not covered for unemployment during the first 60 days of the policy.
Berkeley Alexander's mortgageSAFE MPPI plan is a similar product but it offers greater choice of a 30 or 60 day waiting period and a benefit payment term of up to 12 or 24 months. Comparing premiums for full accident, sickness and unemployment cover on a single basis for 12 months with a 30-day waiting period, Berkeley Alexander is cheaper than Median at £4.75 per £100 of monthly benefit.
Although Berkeley Alexander does not offer house emergency cover it offers six months' free cover for new borrowers and three months' free cover for existing homeowners as an alternative.