Many home insurance policies do not cover digital downloads

Music fans could be at risk of losing out financially as the majority of home insurance companies do not cover digital downloads, according to a recent study by Which?

The study by the consumer watchdog found that a third of leading home insurers’ standard policies fail to offer any form of protection, even though over 100m tracks are downloaded by Brits every year. Those that do offer cover generally limit it to around £1,000.

According to Which? only four providers, including HMV Digital, Play.com, 7 Digital and Tesco Entertainment, allow customers to re-download lost music . However others, which includes the popular iTunes, say in their terms and conditions that: "Products may be downloaded only once and cannot be replaced if lost for any reason".

Which? CEO Peter Vicary Smith said: "It's surprising that, at a time when the popularity of digital downloads is soaring, insurers aren't offering music lovers the protection they need. People who buy a lot of digital music should double check their home insurance policy to make sure downloads are covered. If they're not, we'd recommend switching to a provider that has entered the digital age."

How to Get Mortgages For Bad Credit

For people who want to pay off their debts and increase their credit score, they can always look for mortgages for bad credit. It is a loan which is derived from the home equity accumulated over the years in your home. This kind of loan can be quite beneficial for you since it can lower interest costs and monthly payments. It also consolidates your debts so that you can only pay once a month.

The two most accepted choices for bad credit mortgage loans are cash in mortgage finance and a home equity mortgage. These mortgages count on your equity, which will then be used to manage your debts. When you consolidate your debts, it can be arranged to combine all of your credit card payments, auto loans and other related debts into one easy monthly, lowered interest payment. In due time, you will notice that your credit score is improving.

When you apply for a bad credit mortgage loan, you need to increase your down payment as well as your cash reserves. A lower credit score means more money to pay for down payment. Credit scores below 600 require around 5% down payment. Lenders need to have confidence that you can still pay your loans even if you’re going through a financial situation.

You can always have the option to do your own research on this type of loan.

Mortgage Protection Insurance

A large amount of UK homeowners never consider mortgage payment protection insurance (MPPI) when taking out their home loan. Although MPPI is not compulsory it should be a priority for anyone with a mortgage.

For people who might have stretched themselves financially with their mortgage it is probably even more important to be covered in the event of unforeseen unemployment. Good policies will cover any bills related to your mortgage - including interest and repayments.

The State benefits for people in this situation are limited and they are means tested, so if you have savings you would be expected to use them first. Payouts can also take around 9 months to be made.

A good MPPI policy will start to pay one month after you are out of work (either through illness or redundancy) and typically last for 12 months. The one-year period is the time expected to be taken by people to find other employment or recover from illness or injury.

Insurance payments should start once you inform your provider that you're out of work and this is verified. Payments are usually made directly to your mortgage lender, although in some cases payments are made to the customer.

Although costs can vary between different providers, it is usually by a small amount. On an average mortgage payment of £650 a month, cover sold by most banks and building societies would cost about £450 a year.

Most people tend to buy MPPI from their mortgage lender at the time of the transaction or through a broker/adviser, but it can be bought as a stand-alone product from any provider. A list of MPPI providers can be obtained from the Association of British Insurer's website.

As with all types of insurance available, remember to shop around and be wary of lenders who insist on selling you their insurance.

Home Equity Conversion Mortgage Saver Offers 0.01% Loan Rates

In late 2010, the Federal Housing Administration launched a new type of reverse mortgage called a Home Equity Conversion Mortgage Saver, which reduces most of the 2 percent up-front insurance rate that borrowers have to pay from standard federal backed loans.

However HECM Saver – is offered only to homeowners 62 years old and over. The Saver’s up-front premium is only 0.01 percent. This up-front premium difference is huge, particularly as the loan rate increases. The current yearly fees that borrowers have to pay are similar as for an average reverse mortgage of 1.25 percent of the loan’s existing balance. Although Saver borrowers are limited only to borrow 10 to 23 percent less than the average version permits.

A perfect applicant for the HECM Saver is a senior citizen with a permanent income or resources who has long-term needs further than the need for temporary money. “The HECM Saver is ideal for their situation because there are enough proceeds [to do so],” says Beth Paterson of Reverse Mortgages SIDAC, St. Paul, Minn.

“The HECM Saver is a breakthrough product that will enable more seniors to access the advantages reverse mortgages can provide,” says Eric Declercq, national sales lead for reverse mortgages at MetLife Bank, Bloomfield, New Jersey. “It increasingly will become an important financial planning tool for America’s senior population looking to use the equity built up in their homes to finance a comfortable retirement.”