Call In What Events Will Home Buyers Protection Insurance Pay Out?
It’s all right us telling you why home buyers protection insurance is such a benefit to you and your house purchase, but the major question to ask when considering your insurance options is ‘when will the policy actually pay out?’ We hear you, and we want to make your decision on purchasing home buyers protection cover as simple as possible.
We’ve listed all the eventualities that may unfortunately occur resulting in your home buyer’s protection insurance paying out.
1
If the property is withdrawn from the sale process by the vendor (seller) for any reason outside of your control or for reasons that have not been prompted or influenced by your actions.
2
Where the seller of the property accepts an alternative offer from a third party that is at least a £1,000 higher than the offer you have had accepted (the dreaded gazumping!).
3
Where the local authority search reveals that the property is subject of a ‘compulsory purchase order’ (In these rarer cases your property may be deemed unsuitable for purchase via the standard route)
4
The individual who is selling the property is not actually legally entitled to make the sale (this would be an unfortunate one!)
5
If anything such as death, redundancy or relocation were to happen to you or the person purchasing the property with you, meaning that as a result you are unable or unwilling to continue with the property purchase (In these circumstances it is more important to keep your finances safeguarded)
6
In the event that the initial mortgage lender’s valuation is less than 90% of the amount you have offered and had accepted for the property (If your mortgage provider doesn’t think your property is worth what you’re paying, your purchase may fall through. Thankfully you’re covered with Rhino!)
7
Where the mortgage lender insists on rectification work being undertaken to the property before releasing the funds and this rectification work will cost more than 10% of the amount you have offered for the property (these cases are rare but can happen should the property you are purchasing require significant work to be carried out prior to purchase)
8
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 (these cases are unfortunate, but with home buyers’ protection insurance you are covered)
9
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 (never fear! Rhino’s home buyers’ insurance will cover your up-front fees in this instance)