Buying a house can be a stressful, expensive and complicated process. There are so many expenses to consider, such as solicitor’s fees, conveyancing fees, mortgage adviser’s costs, removal costs and any renovation costs.
It would be nice to be able to relax and know that these costs will help the buying process; however, the problem is that as many as three in ten sales fall through for a number of reasons, such as the buyer changing their mind, the mortgage value being less than the accepted offer price, and surveyors and mortgage teams identifying extensive remedial work. Monies spent on things such as the homebuyers survey cost, mortgage fees and the conveyancing fees and disbursements will have been spent for nothing if the sale falls through, which is why you should consider taking out homebuyers’ protection insurance to cover these costs should the sale not be completed.
What does it cover?
Homebuyers’ protection insurance will usually cover the homebuyers survey cost, conveyancing fees to an agreed limit, mortgage arrangement and lenders’ fee protection to an agreed limit, and gazumping fees. Protection insurance is valid for a specific number of days.
What circumstances will it cover?
Homebuyers’ protection insurance will cover costs involved for reasons such as the vendor withdrawing the property from the market, the redundancy or relocation of full-time employment (but not voluntary redundancy), the property valuation being less than 90 per cent of the accepted agreed sales price, renovation work needed as identified by the mortgage lender, or the property being damaged during the sales completion process and it costing more than 10 per cent of the value of the house to repair it.
While adding homebuyers’ protection insurance is yet another cost in the house buying process, it can be worth the extra peace of mind when you consider how often the sales process fails to be completed. Shop around for the best prices for all the costs involved, including the homebuyers survey cost and the insurance cost. Just as it is worth getting an in-depth survey to make sure you don’t have any nasty surprises following the purchase, check the insurance terms and conditions to be certain that it will cover any anticipated problems.
Nobody wants a house purchase to fall through, but it can be easier to swallow if you are financially protected.« Back