First time buyer guide
Home Buyer’s Insurance
What Is Home Buyer’s Insurance?
It’s a type of policy that covers the loss of some expenses you’re likely to have made (legal, survey and mortgage lending costs, for instance) when your offer to buy a home has been accepted but the purchase falls through.
The most frequent reasons are:
- Gazumping: a higher offer is made. Read our Gazumping article to find out what it is and how to protect yourself.
- The property is taken off the market.
- Your mortgage valuation is lower than the offer.
- The survey highlights repair work that needs to be done.
What Does Home Buyer’s Insurance Cover?
Home buyer’s insurance typically covers:
- Solicitors/conveyancing and search fees
- Survey and valuation fees
- Mortgage arrangement fees
How Does Home Buyer’s Insurance Work?
- Can be cancelled for free (in the first 14 days)
- Gives you cover for six months
- Starts protecting you from the very first minute
- Ends when the term of the policy is over, if you cancel it, if you complete it, or if you make a claim
- Gives you seven days to buy the policy once your offer for the property has been accepted formally and in writing by the seller
As you can see, if the purchase of your dream house cannot be completed and it’s not your fault, having home buyer’s insurance can give you some peace of mind at a crucial time in the process of becoming a homeowner.