Home Buyer's Protection Insurance UK up to £2,500
** No Excess From just £69!
Home buyers protection insurance Comparison
Updated by Eamonn on 09h March 2022
Buying your first house or moving to a different residence can be fraught with stress. One day everything is running smoothly and the next the chain is broken. Apart from the gloom of a deal falling through, you most likely have solicitor and others fees which are non-recoverable. This is the purpose behind home buyers insurance, a policy that is built to protect these additional costs that you have burdened and these can be substantial. The risk of a deal falling is real for first time buyers even experienced
It does not matter whether you are a first-time buyer or an experienced buy-to-let investor, these issues are part and parcel of the home-buying process.
Why you need Home Buyers Protection Insurance
Research carried out by Which in 2016 revealed that 3 out of 10 property sales fell through, that is nearly one in three. Whilst 16% did not lose out financially, the remainder did lose a substantial amount due to survey fees and brokering costs. The average loss was £1,000 with 5% losing a whopping £5,000 and above. Property chains contributed the most to failed sales. If able, it is best to avoid properties that in a chain. This includes properties that the owner had died or the vendor's second home and is currently vacant.
Did you know? The average cost to a home buyer of a property purchase falling through is over £2,500 ( Which.co.uk )
Does buyers protection include conveyancing insurance?
Home buyers insurance does include conveyancing insurance and more. The policy will enable you to recover conveyancing fees, valuation fees and mortgage or lender fees, to the values agreed within the policy.
Is this product available to landlords in addition to home buyers?
This product is also suitable for landlords buying a new property too. This makes it perfect for the purchase of buy to let properties or just a home buyer buying their first property or moving up the housing ladder.
If you are a landlord, we can also provide competitive quotes for
When should I buy Home Buyers Insurance
As soon as possible after your offer has been accepted. The policy will only become valid after it has been purchased, and it will be backdated to the date the offer was accepted. The cover is valid for 180 days from the start date of cover.
What is included in Home Buyers Protection insurance?
Buying a home is stressful enough without the financial worry of a sale falling through. Home Buyers' Protection Insurance helps cover legal, survey and mortgage lending costs should your purchase fall through.
2 Key Reason Why House Sales Fall Through
Break in property change
For a property transaction to be successful, the buyer and seller must first agree on a sale price. Most buyers are not first time buyers and in order to complete the purchase they will need to complete the sale of their existing property. This creates a chain that depends on the successful sale of the buyer's existing policy. If any transaction in the chain is delayed, this will impact all in the chain. A typical example of delay is if one buyer in the chain can not gt approval for a mortgage. A prolonged delay can easily result in the seller returning the property to the marketplace or accepting another offer.
Gazumping is simply when the sellers accepts a better offer before contracts are signed. This unfortunately is common in England and Wales and the buyer will not only lose out on the property, but also any conveyancing and survey fees.
Did you know? 30% of house purchases end up falling through (Which.co.uk)
Home buyers protection Insurance is it worth it
Home buyers protection insurance is worth it if you wish to remove any stress of a financial loss when in the process of buying a property. Now that you understand the purpose and average cost of home buyers protection insurance, you must decide, is it worth it. Take into account that removing the risk of financial loss will make the house buying process a little less stressful.
Who Provides buyers protection Insurance in the UK
Oops and Surewise over different levels of buyers cover. For comparison purposes the top level of cover for each is illustrated in table below. Surewise home buyer's insurance does make any reference to cover for lending fees. Lending fees are fee's levied by the lender to process your application
|Provider||Excess||Conveyancing fees||Survey & Valuation fees||Mortgage arrangement Lender Fees|
|Oops Platinum||No excess||up to £1,100||up to £750||up to £400|
|Homeowners alliance||No excess||up to £750||up to£500||up to £250|
|Legal General||up to £800||up to £550||up to £150|
|Surewise Gold||£125||up to £1250||up to £1000||Not Mentioned|
What is Gazumping?
Gazumping is less common, but when house prices are on the rise it can be quite common. The term is used to describe the situation in which you have come to an agreement with the vendor on the sale price. The buyer and seller (vendor) have verbally agreed on the sale. The next stage is the signing of contracts to finalise the sale. During this period, the vendor may receive a much better offer, if they accept you have been gazumped. When it comes to money, ethics can take a back seat. The good news is that home buyers protection insurance will protect you in such a situation, taking care of any costs that you had incurred.
How Can I protect against Gazumping?
Gazumping is legal and the only way to protect yourself is to purchase home buyer's protection insurance which includes cover if you are gazumped. Different brokers provide polices with slight variations in price and level of cover in each section, but all provide cover for lost conveyancing fees, survey fees and other costs directly related to the house purchase costs.
Gazumping is less likely to occur if you can move quickly with the house purchase. In order to complete quickly, don't; drag your feet or let anybody in the chain make delays. Be proactive by getting a mortgage agreement in place, a solicitor on standby and any necessary certificates or documents.
Even with all these precautions, a third party can still make a higher offer to the sales agent. The estate agency by law must pass on this offer, even if the seller has already accepted your offer. If all these precautions fail, you can then fall back on your home buyers policy against the house purchase falling through to cover your expenses.
2 Levels of cover available Platinum or Gold
What is not covered in home buyers insurance
What is the difference between Gold Cover and Platinum Cover?
|Gold Cover||Platinum Cover|
|Conveyancing Fees : up to £1,100.00||Conveyancing Fees : up to £800|
|Survey and Valuation Fees : up to £750.00.||Survey and Valuation Fees : up to £550.00.|
|Mortgage Arrangement and Lender’s Fees : up to £300.00||Mortgage Arrangement and Lender’s Fees : up to £300.00|
|Maximum Cover : up to £2,250.00||Maximum Cover : up to £1,650|
FAQ House Buyers Cover
This section contains answers to frequently asked questions by customer that have applied for buyers protection insurance. It is intended as a quick reference guide and is not part of any insurance policy. It is important to read the full policy wording prior to the purchase of any insurance product, including home buyers' insurance UK.
An excess is an amount that you would be deemed liable for. For example when you rent a car or van you most likely have an excess that will not be paid by the insurance company. The good news with this house buyers insurance policy, no excess exists. As such, your costs will be reimbursed in full.
The cover amount in each section is fixed and can not be set according to an individual's requirements.
Cover is valid for 6 months.
Yes, the cover offered is suitable for a new build property that you will be buying
Yes, the cover offered is suitable for a new build property that you will be buying.
If no claims are pending, then you can cancel your home buyers' insurance without charge within 14 days of the start date of your policy
Home buyers protection insurance is not compulsory, as such you need to weigh up the risks versus the cost of buying home buyers' protection. Having home buyer's protection can not prevent a sale falling through, but it can protect you against monetary loss. A property purchase can fail for many reasons, how would you feel having to foot the associated costs? A home buyers policy will reimburse these fees, helping you to accept the situation and move forward positively with your property search.
Most insurance providers will still categorise the property as vacant even if someone stays over for one or a few nights. You could arrange for a house sitter, some else living in the property, but you must advise your insurer,