Is Home Buyers Protection Insurance worth it?

Is Home Buyers Protection Insurance worth it?

The process of buying a home is exhilarating. There's nothing quite like the feeling of seeing your name on the title deeds and holding the key to your very own place. 

But home buying isn't always smooth sailing. Incredibly, 1 in 4 house sales in the UK falls through, meaning a frustrating loss of time and money for prospective buyers. And you'll have to start the process of house-hunting all over again.

This is where Home Buyers Protection Insurance comes in to safeguard any upfront costs associated with buying your house. 

But is Home Buyers Protection Insurance worth it?

What is Home Buyers Protection Insurance?

Home Buyers Protection Insurance is just that – protection against financial loss for those purchasing a property. This type of insurance offers you a safety net should your house sale fall through against losing the money you've already spent on the prospective sale. 

It's more in demand than ever – more and more people are taking out Home Buyers Protection Insurance every year to safeguard their money.

Why would you need Home Buyers Protection Insurance?

The process of buying a property comes with myriad associated costs. It's not just the deposit, stamp duty and the cost of the home itself. There are several significant upfront costs involved in home buying, which include the valuation fee, surveyor's fee, solicitor's fee and estate agency fee, to name a few.

This can run to thousands of pounds – and cannot be recouped if the sale doesn't go ahead. Even if the seller accepts your offer, you're still not out of the woods. Anything can happen up until (and sometimes even on) completion day, leaving you high and dry – and out of pocket.

With Home Buyers Protection Insurance, you can claim these costs back, meaning you won't be starting the search for your new home frustrated over losing precious funds on the first failed purchase.

What types of costs does Home Buyers Protection Insurance cover?

The upfront costs associated with buying a property can mount up – and it can be a real blow to lose these early investments into your house purchase. 

Most of these types of expenses can be partially or fully reclaimed under Home Buyers Protection Insurance, including:

• Conveyancing fees
• Survey/ valuation fees
• Mortgage lender fees
• Accommodation for your family while you're between properties
• Storage for your stuff until you get somewhere sorted
• Protection against 'gazumping' – if your seller pulls out after accepting a higher offer

Do you need Home Buyers Protection Insurance?

You don't technically need Home Buyers Protection Insurance to purchase a home, and of course, there's a chance you won't need it. But this is the case for many things in life that we wouldn't dream of leaving to chance!

For instance, you wouldn't travel abroad without travel insurance, but statistically speaking, you're much more likely to redeem your Home Buyers Protection cover than to claim on your travel insurance. 

For a relatively small sum, this type of cover will give you priceless peace of mind. You'll be safe in the knowledge that if your sale is one of the 25% of house sales that fall through in the UK, it won't be a devastating financial blow to you and your family. 

Home Buyers Protection Insurance is a growing area of insurance, as more people realise that sinking thousands into an unsuccessful home purchase isn't just hard luck – it's completely avoidable so long as you have the right cover. 

What's the bottom line?

You could save a small amount of money by skipping Home Buyers Protection Insurance, but if you do need it – as 30% of homebuyers do – you'll be glad you took it out. If you want to learn more about our Home Buyers Protection Insurance, contact us today.