Home Buyer's Insurance

What is covered:

The insurer will pay your conveyancing costs, mortgage arrangement
fees, lenders fees, survey fees incurred by you and subject to the limit
of indemnity in the event of the following:
!!!61623; the property is withdrawn from sale by the vendor for reasons
beyond your control;
!!!61623; the vendor receives and accepts an offer which is at least £1,000
greater than the offer they have accepted from you;
!!!61623; a local authority search highlights that the property is subject of a
compulsory purchase order;
!!!61623; the vendor is not legally entitled to sell you the property;
!!!61623; you or the person purchasing the property with you, die, are made
redundant or are relocated, and you are unable or unwilling to
continue with the purchase of the property;
!!!61623; the initial mortgage lender!!!8217;s valuation is less than 90% of the sum
you have offered for the property which has been accepted by the
vendor;
!!!61623; prior to the release of funds the mortgage lender insists on
rectification work to the property and the cost exceeds 10% of the
sum offered by you which has been accepted by the vendor;
!!!61623; the mortgage lender applies a retention on the loan which is more
than 10% of the sum offered by you which has been accepted by
the vendor; or
!!!61623; the property is damaged during the period of cover and the cost
of rectification work exceeds 10% of the property value.

What is not covered:

The insurer will not be liable for any costs and expenses:
!!!61623; incurred before the start date;
!!!61623; if you withdraw from the purchase of the property for any reasons
other than those specifically covered by this policy;
!!!61623; if you are aware of a previous survey having been carried out to the
property up to 90 days prior to the start date that may give
reasonable cause for the purchase to fail;
!!!61623; if you are aware, prior to the start date, of any circumstances which
could lead to a claim being made under this policy;
!!!61623; if you deliberately and knowingly cause a delay or use unreasonable
behaviour that results in the failed purchase;
!!!61623; where they can be reimbursed by your employer or where your claim
is covered by another policy;
!!!61623; where you are able to obtain a refund of costs which you have
incurred; or
!!!61623; where, in the case of redundancy: you are self-employed, a
company director or partner of the company giving notice of
redundancy, or, the redundancy is voluntary.

ACG wrote: »

We do not see 30% of cases fall through.
Maybe 5%.

But if it falls through, you can be out of pocket anywhere from nothing up to thousands. We had one recently which was particularly bad one and our customer is out of pocket by quite a lot. But the flip side is that we have another client whos felel through earlier this year, he is out of pocket nothing.

He has paid our fee, but as it is not his fault, we will do another application for him free of charge. His valuation fee was a free one. He may have to pay for a valuation fee next time but we will see what is around when he is ready to move.

Sorry but I don't quite understand your post. Who is 'we' and are you saying that the client that had their sale fall through had insurance and was compensated?

What insurance would this be then?

davidmcn wrote: »

To highlight some of the limitations of the insurance, it appears to cover you if



but not the many other adverse things which may appear in a search

and also if

but not for the countless more likely title problems which may arise.

But are those adverse things enough to make you pull out of the sale? Or could they cause the sale to fall through unavoidably?

I feel like for £50, if there is even a small chance of the insurance company paying out and saving you from losing out on hundreds of pounds it is worth it.