Home Buyer Protection Insurance?

soplum

Hi,

Is home buyer protection insurance worth getting? 

I am a FTB and overly cautious. 

If you do think its worth getting, do you have any recommendations?!

TIA

tasticz

Never purchased it. Been gazumped couple of times where we lost £375 each time for surveys. Up to you really. I think £100 for 6 months cover or something up to £1500?

Check fine print, see what is covered and what isn't

user1977

From previous threads I think general opinion is that they're very restricted about the circumstances which they cover, so not really worth it (unless you fancy a gamble that you'll be "lucky" enough to have a valid claim).

Irishpearce26

From what I've heard it people pulling out wont protect you. Almost has to be that the house fell down in between. I wouldn't bother. Hold off on any surveys until close to exchange if your very worried about costs.

LAD917

There are a variety of policies. Most do cover the vendor withdrawing, you being gazumped by 1k or more, down-valuation of 10% or more, and a few other less common circumstances. The maximum benefit is normally in the £1500-2500 range with caps by type of fee: mortgage arrangement fee, survey fees, and solicitor conveyancing fees.

Note that none of the policies covers you withdrawing (for any reason).  There is also no cover for issues raised by the survey, unless the mortgage lender requires remedial work of more than 10% of the purchase price.  

I don't think this is a terrible deal, but it's basically insurance against the vendor changing their mind and gazumping. It doesn't cover the biggest risk (for me), which is that something in the conveyancing process turns up a risk or defect I'm not willing to accept. Plus, I'm not the type of person who insures against relatively small risks. 

If you do take this type of insurance, one question I'd be asking is whether it reimburses your search fees.  (Some of the policies are vague, and it's unclear whether searches are included in "conveyancing fees.")  At least the way I do things (ordering searches right away because they take a long time), you'll rack up £500 in search fees far quicker than you will £750 in conveyancing fees.