What is home buyers protection insurance?

Home Buyers Protection insurance provides an element of protection against expenses , when you are buying a new home. Cover varies by provider but the three key benefits are cover for conveyancing, survey and valuation costs and lender fees. Some providers also offer cover against gazumping and storage costs.

When purchasing a property you will need to pay for for legal costs and searches, surveys and mortgage arrangement fees before a sale is completed,

Cover for a house survey revealing issues or an unexpected problem found by local searches, can also be covered.

Do I need Home Buyers' Protection Insurance?

No, it’s not a legal requirement and you can proceed a purchase without it.

How much does it cost?

We recommend you compare prices with a range of insurance companies as costs vary widely from sub £100 to over £200 for varying levels of cover. With stats showing 30% of home sales fall through we believe claims history for this type of insurance could now be effecting the price. Home buyers protection insurance is still a relative new product with just a small number of niche insurance companies providing cover.

The obvious question is ‘Is home buyers protection insurance worth it?’

With over 30% of property sales falling through and the average costs of conveyancing, surveys and fees being £2,500 and cover between £100 and £200 you have to say it’s worth considering at current prices, but with a 30% fail rate, we expect prices to continue to rise.

Compare home buyers protection insurance

Buyers protection is not limited to first time buyers or purchasing a home for personal use. Policies are available for Landlords and Property developers a like, protecting home buyers and home sellers throughout the process of buying or selling their property.

What is Gazumping?

Gazumping is when a property seller accepts a higher offer after agreeing an offer which has been accepted. The initial buyer has been ‘Gazumped’. This is why it is important to reach the point of exchanging contracts as soon as possible. Gazumping is not illegal but is not seen as an ethical practise.

Step to buying a house..

Other important things to consider when purchasing home buyers protection insurance

Is the length of cover which typically range between 120 and 180 days and most companies do not offer a renewal.

When to purchase the cover? You will need to buy insurance within a certain period of you having had an offer accepted.

Home Buyers' Protection Insurance will not cover expenses incurred before the policy was in place.

Check to see if the policy has an Excess. Most providers come without!

Check to see if the policy covers ratification work if purchasing an older property.

Check clauses referring to the property valuation if less than the accepted offer

Top tip - Compare prices!

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