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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.

Any associated costs if the property is withdrawn from the sale process by the vendor (seller) for any reason outside of your control (This is a broad term that covers almost any eventuality where a house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!)
Any costs where the seller of the property is given and accepts a better offer, one that is at least £1,000 greater than any offer you previously had accepted (The dreaded gazumping! No one wants to fall victim of gazumping, but if you do, Rhino has you covered)
Costs where the search carried out by local authorities 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)
Costs if the individual who is selling the property is not actually legally entitled to make the sale (This would be an unfortunate one!)
Costs if anything such as 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 (In these circumstances it is more important to keep your finances safeguarded)
Covered costs 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!)
Costs 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)
Any costs involved 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)
Costs 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)

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