Put simply, home buyers insurance is a cost effective way of protecting your outgoings on a property purchase. It is an unfortunate fact that 1 in 3 property purchases in England fall through (which.co.uk). So there is over 30% chance that when buying a property that you could lose the money you have spent so far, should the unfortunate circumstance occur.
When buying a property, you will have financial obligations, even before you have exchanged and completed. Until exchange of contracts has occurred, there is still a risk that the purchase can fall through. Unfortunately the costs you have already outlaid, are normally non-refundable. These costs can include, solicitor fees, searches, survey, valuation, mortgage broker fees, mortgage lender fees etc. On average, these costs can amount to £2500! So not only have you spent your hard earned cash once, you will need to spend it twice or more to purchase another property. As if buying a property wasn’t expensive enough?!
This is where home buyers protection insurance comes in. We have partnered with Rhino Home Protect, to offer insurance policies to protect these costs, should the unfortunate situation arise. You can purchase protection for as little as £69! Even better, if you a Privee client, you will benefit from home buyers protection insurance – essential, as standard!
There are many reasons a property purchase can fall through. You are covered with our home buyers protection insurance should:
You are gazumped (gazumping) – This is where the seller accepts another offer even though your offer had been accepted. (at least £1,000 greater than any offer you previously had accepted)
The seller pulls out - Any associated costs if the property is withdrawn from the sale process by the vendor (seller) for any reason outside of your control (This is a broad term that covers almost any eventuality where a house purchase falls through and it isn’t your fault!)
The mortgage lender’s valuation is less than 90% of the amount you have offered and had accepted for the property
Where the search carried out by local authorities reveals that the property is subject of a ‘compulsory purchase order’
If the individual who is selling the property is not actually legally entitled to make the sale
A death, redundancy or relocation were to happen to the person purchasing the property with you, meaning that as a result you are unable or unwilling to continue with the property purchase
Where modification or rectification are deemed required prior to the release of funds by the mortgage lender insists. These costs would need to exceed 10% of the sum offered by you for the purchase (These cases are rare, but can happen should the property you are purchasing require significant work to be carried out prior to purchase)
If the mortgage lender applies a retention on the loan which is more than 10% of the value of the house purchase you offered and was accepted by the person selling the property
If the property is damaged during the period of cover and the cost of rectification work to fix the damages exceeds 10% of the property value.
There are many immediate costs involved in purchasing a property, as well as unforeseen stresses and potential pitfalls that all home buyers face. Unfortunately, many people see these costs as ‘par for the course’ when buying a property but should certainly not be the case.
See below for some FAQ’s you may find useful:
Can Home Buyers Protection Insurance be used for First Time Buyers?
Yes absolutely. The policy is perfect for first time buyers who are looking at purchasing their first home as it provides peace of mind as a safeguard that all up front fees are covered. Buying your first home can be a very daunting prospect, with information and figures boggling the minds of even the most researched of soon-to-be homeowners. With all this confusion and trepidation, we feel that you shouldn’t also have to worry about your finances. Buying your first home is already expensive, so the possibility of losing your up-front costs due to the purchase process failing should not be something else to worry about. We offer home buyers protection insurance for first time buyers at cheap and cheerful rates, making the process of buying your first home that bit easier.
Why should I take out Home Buyers Protection Insurance?
The only reason anyone would take out Home Buyers Protection Insurance is if they are purchasing a property in the UK. No matter what the nature of your property purchase is, your up-front costs are at risk in case the purchase of the property falls through. It is a very common and very popular insurance policy for homebuyers.
Is Home Buyers Protection Insurance worth it?
The average cost of a house falling through is over £2,500 to the homebuyer, and with approx. 30% of all house purchases falling through, the risk of leaving your finances vulnerable simply is not worth it. To avoid your finances being lost needlessly, get Home Buyers Protection Insurance today.
How do I buy Home Buyers Protection Insurance?
That’s the easy part! Visit Home Buyers Protection Insurance | Privee Property
Our quick and simple online quote engine is designed with you, the homebuyer, in mind. Simply choose the level of cover you want and within a few clicks you will be covered.
How long does the cover last for?
Our standard level of cover is 120 days, meaning that if you purchase the insurance, you will have 120 days cover from your policy start date to your policy end date. You can purchase cover for up to 180 however, if you felt you needed a little longer to get things over the line.
When can I take out Home Buyers Protection Insurance?
How about right now? In all seriousness anyone can take out the cover prior to, or within 7 days (or on the week of) notifying your solicitor / mortgage lender that you would like to purchase a property.
Can buy-to-let buyers benefit?
Yes! Whether you are buying your dream home, or a buy-to-let property for a growing portfolio, our home buyer’s protection insurance provides valuable cover for landlords. The risk of purchasing a property as a soon-to-be rental or a second home are identical, therefore our protection insurance provides the same cover for landlords as it does your standard homeowner. We want to offer the same securities to landlords as we do to first time buyers, and our home buyers protection insurance does just that. For a successful landlord, maintaining your property business’ bottom line is paramount in running a successful business, and losing valuable finances due to your property purchase falling through is not a scenario you will want to be faced with. By taking our Rhino Home Protect homebuyers’ protection insurance you are making sure that your business’ finances are kept safe, regardless of the risk.
What about property developers?
For a property developer, buying houses and selling them on is a serious business. Keeping costs low and maintaining a high turnaround of properties is the key in running a successful property developer business, making the need for insurance in the event of financial loss very high. The risk vs the reward of not having insurance in place to protect the cost of buying a property is very apparent, and that’s why more and more property developers are purchasing home buyers protection insurance when buying and selling their properties. The risks associated with buying a house are identical whatever type of home buyer you are, and because of this our insurance policy is a one size fits all policy, appealing to all types of property investor.
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