Home Buyers Insurance Checklist
Whether you’re a first-time buyer or looking to get a buy-to-let, we have put together a simple checklist of all the various things that you need to consider before you start looking for a new property.
Buying a new home can be a daunting undertaking, and most people underestimate the considerations that must be understood before taking the leap. Home Buyer's Protection Insurance is one of those considerations and is something that should be factored in when sorting your finances at the beginning of the home-buying process.
Choosing a new property can be an exciting time, but before you look for a new home, it’s important to make yourself aware of all the associated costs and stumbling blocks that homebuyers face.
- Affordability: This may seem like a no-brainer, but make sure that you can afford the type of property that you’re looking at purchasing. Having enough for a deposit is one thing, but making sure you are able to afford the monthly payments of not just your mortgage but utilities, taxes, and amenities are vital considerations when choosing a new home.
- Credit Rating: Having a positive credit rating will be a beneficial factor in determining the type of mortgage you can take out. A good credit rating makes it easier to get the mortgage you want, as well as a good mortgage rate, so being aware of your credit score is very important.
- Age of Property: When taking out home insurance, the age of the property you are purchasing becomes highly relevant. The aesthetic of old properties may add value in terms of their appeal, but their age and design may carry hidden costs when it comes to repair, upkeep and insurance. Property features such as plumbing and electrics can become compromised with age, and older properties have a higher risk of dangers such as mould or knotweed. Being aware of a property’s age and the financial implications this may cause is important in understanding your financial position when choosing an older property.
- Flood Risk: Flooding can be devastating to the value of a property and the cost of insurance. Damage caused by floods is considered high risk by insurers, and often flooding is not something a standard home insurance policy will insure. Make sure that you are aware of a property’s flood risk if you are considering buying a new home, as this will carry significant financial implications.
- Property Inspection: Having your prospective new property thoroughly inspected is a vital consideration. Inspection will raise any concerns that may affect your home insurance premiums as well as highlight issues that may pose a financial risk in the future.
- Home Buyers Protection Insurance: Having insurance in place that covers the up-front fees you will part with as a home buyer is a fantastic example of mitigating financial risk. Homebuyers will often overlook the risk they face when paying for initial fees in the home-buying process. 1 in 4 property purchases in the UK fall through, meaning that any uninsured costs a home buyer has incurred will be lost. These losses cost home buyers an average of £2,000+ in the event of a property purchase going south, so having insurance in place to protect these costs provides valuable peace of mind throughout this process.
If you have any questions surrounding your insurance obligations throughout the home-buying process, please feel free to get in touch with our dedicated team today. Here at Rhino Home Protect, we offer Home Buyers and Sellers Protection Insurance to thousands of UK home buyers every year and have the experience and expertise to help.