Home Buyers Protection Insurance
Buying a home is a landmark in people’s lives, but it’s not without a certain amount of risk. For one thing, people take on an enormous amount of debt for 10 to 30 years. For another, there is the risk that once you’ve paid an assortment of fees to facilitate the purchase process, the seller accepts a higher offer from a different bidder. It’s called gazumping, and it can be expensive if you don’t have Property Purchase Insurance.
Why do you need Property Purchase Insurance?
We’ve stated the obvious; buying a home is expensive, so the last thing you need is to pay non-reimbursable fees for nothing. Home Buyers Protection covers financial losses incurred when property purchases fall through. Cover starts when the offer is accepted and ends when the purchase is completed, you cancel the property, or you have to submit a claim. You have to purchase cover within 7 days of your offer being accepted. The maximum period of cover is 180 days, and it only applies to properties in England and Wales.
Choose your level of cover
Sagic (in association with Surewise.com) offer you 3 levels of Home Buyers Protection Insurance: Bronze, Silver, and Gold.
The types of benefits are similar. It’s the amount of coverage that differs. For example, Bronze covers conveyancing fees up to £750, while Gold goes up to £1,250. Silver covers survey and valuation fees up to £750, while Gold goes up to £1,000. Bronze covers mortgage and arrangement fees up to £250, while Silver goes up to £500.
What does cover include?
Home Buyers Protection plans provide protection against:
- Withdrawal of the house from the market
- Vendor not being legally entitled to the property
- Your death or the death of your financial partner in the purchase, for example, spouse, parent, or child
- You or your financial partner is made redundant
- Gazumping, provided the other offer exceeds yours by at least £1,000
- The property being subject to a compulsory purchase order
- Note: You are not covered if you withdraw your offer for reasons not included in the policy schedule.