Is it right that home insurance is voluntary and buildings insurance is compulsory?
In fact neither are compulsory. Having said that your mortgage company may insist that you have buildings insurance and/or home insurance in place under the terms of their contract with you. Usually they insist on you having just buildings insurance in place – they don’t want your home to fall down in a disaster, otherwise bang goes their collateral on the home loan. It is better to be safe than sorry – it is generally inadvisable not to have both home and buildings policies in place.
