Considerations For Taking Out Home Buyers Protection Insurance
Are you ready to look at property for sale in East London? If you are, you may wonder whether taking out 'home buyers protection insurance' is worthwhile.
There is currently no law to protect homebuyers from financial loss if their purchase falls through, so insurance companies have stepped in to fill the gap with policies that allow prospective purchasers to reclaim any survey costs, mortgage arrangement expenses and legal fees that they have incurred if their purchase doesn't proceed as planned.
At Lyss Homes, our team is here to provide you with the information you need about this insurance product so you can make a well-informed decision about taking out a policy.
What's Covered By Home Buyers Protection Insurance?
All insurers offer different levels of cover for their policyholders, however there are some costs that are covered by virtually every insurer. These include:
- Survey costs
- Conveyancing fees
- Valuations
- Mortgage arrangement fees
Checking precisely what kind of cover you'll have is vital before buying any insurance product. It's also wise to find out about excesses and claim limits too.
When Can I Claim?
All insurers have their own criteria for making a claim, but there are a few instances that are common to virtually every policy. These include:
- Gazumping
- Damage to the property
- The seller pulling out of the sale
- The death of a purchasing party
- Redundancy
- Compulsory purchase order on the property
- If the seller cannot legally sell the property
What Won't Be Covered?
Several instances aren't typically covered by this type of insurance. These include:
- If you drop out of the purchase
- If you receive a refund of your legal fees
- If you're deliberately delaying the purchase
- If the survey is carried out before taking out cover
- If you fail to instruct a fully-licensed solicitor
- If the home is subject to sealed bids
Do I Need Home Buyers Protection Insurance?
There is no legal requirement for property buyers to take out home buyers protection insurance. Therefore, it's really up to you whether or not you take out a policy. Nevertheless, it could be a wise investment. Purchasing any property is a costly process, and there will always be things that may go wrong during the selling and buying process.
Having suitable cover to ensure you don't find yourself out of pocket if an issue arises is a sensible idea, especially considering that comprehensive cover will likely only cost you a few hundred pounds. Of course, you should choose a reliable and trusted insurance provider when choosing your policy.
How to get it for free!
We have an agreement with L & C mortgage brokers where you can benefit from free home buyers protection insurance if we introduce you to them and you subsequent take out a mortgage with them.
At Lyss Homes, we can give you professional advice about the benefits of taking out home buyers protection insurance and help to facilitate a smooth and hassle-free property purchase.
Call us today on 0208 050 5452 or send us an email at info@lysshomes.co.uk to find out more.
Sign up to our mailing list
Get tips like this along with the latest property market news straight to your inbox by signing up
Want to sell or let your property ?
We are estate agents and letting agents in Leytonstone, E11 and we are specialists in the East London property market. Request a free valuation and one of our experts will get in touch with you to discuss how we can help you
