Published 1st August 2022
Home Buyers Protection Insurance is a safety net for home buyers designed to help protect from a financial lose if a house sale falls through. In the current climate, finding ways to protect yourself during the home moving process is now more important than ever and Home Buyers Protection Insurance is proving a popular product to do just that.
Let’s take a look at what Home Buyers Protection Insurance is and ask the question does it really protect you in the event of a house sale falling through.
Policies have similar features but as with any insurance, the cover they provide can vary quite significantly. There are however standard features that you can expect to find in most home buyers protection cover policies:
This offers protection for some of the fees incurred by the buyer should the seller choose to pull out. This includes conveyancing fees, survey/valuation fees, and mortgage lender fees. It can also include gazumping protection. Look out for basic cover versus a premium option and the number of days the cover is for. All providers will have a limit on the amount that can be claimed back but this protection can still be invaluable to buyers whose transactions have fallen through.
This will financially protect the buyer if they have already ordered and paid for property searches and the purchase falls through. If the vendor accepts a significantly higher offer from another buyer, search insurance can cover this, and some providers will also provide cover where the buyer changes their mind. But research is key as policies do vary.
Chancel repairs relate to old laws where local people were responsible for the upkeep of the local church. Some properties still have an obligation to contribute towards the maintenance and this can be expensive. Chancel Insurance protects you from any costs you may be asked to pay.
File storage can also be offered as part of the Premium Buyer Protection Insurance. It gives a safe and secure way of keeping title documents safe and accessible after your transaction completes.
The cost of a home move can be expensive. Conveyancing fees and survey fees alone can soon add up to over £2000. The cost of the insurance will vary depending on the level of cover and what is included in the cover and can typically range from £90 to £350. However, this can still be a fraction of the cost you will stand to lose if something goes wrong.
Benefits can include conveyancing fee protection to around £600 and higher in a premium policy, mortgage and valuation fee protection for up to around £500 and gazumping protection if a new offer is accepted at a certain level above yours. Mortgage arrangement fees and broker fees can also be covered.
Policies are commonly available from both high street conveyancers and online conveyancing networks. The latter tend to provide a more inclusive package with rates that are more competitive rather than offering less products at a premium fee. It is important to understand what the policy covers you for and most importantly what it doesn’t.
With one in three sales falling through, having the correct protection in place is essential to give you peace of mind. Choose wisely and you can get financial protection from a house sale falling through. Take a look at the Home Legal Direct’s Home Buyers Protection Insurance for more information.