QUESTION 4:
Will the right policy cover my council tax, utility bills and other costs?

ANSWER:
It can do – as long as you buy enough cover at the start. If your monthly mortgage costs £400 and your other bills add an extra £200 to your costs then you could buy up to £600 of cover, for example. But remember that rising interest rates can cause complications. If your £400 a month mortgage is costing £500 by the time you need to claim you will only have £100 left for your other bills.
To be honest, the high cost of premiums mean people often buy less cover than they need to protect their full mortgage, let alone their other housing costs. Many people protect half their mortgage outgoings and plan to rely on savings or other income for the remainder. It can seem a higher risk strategy, but experts say that in many cases any insurance is better than no insurance so it is worth considering if money is tight.