Home Buyers Protection Insurance – what does it do and why do I need it?

Making an offer on a property brings with it all sorts of expenses including surveyors’ fees, conveyancing fees and mortgage arrangement / lenders fees, but what happens if the purchase falls through? Well for a start the fees aren’t reimbursed, which leaves you, the buy to let purchaser out of pocket and without a home to rent out.

Exchange Insurance covers you against these losses if the purchase falls through before completion due to reasons beyond your control.

The policy will, if the claim conditions are met, pay out up to £1500 to cover your losses due to conveyancing fees, mortgage arrangement / lender fees and survey and valuation fees.

What can go wrong with my property purchase?

Up to 25% of property transactions fail to reach completion, so it pays to protect yourself from incurring costs that could easily exceed £1000 due to reasons beyond your control.

Property transactions can fall through for a number of reasons and our Home Buyers Protection Insurance provides cover to you, as a buy to let purchaser, against the following:

  • Gazumped by another bidder by over £1000
  • The seller withdraws the property from sale
  • The mortgage lender valuation is lower than your accepted offer
  • The property is damaged and repair work is needed
  • You withdraw due to illness
  • The mortgage lender insists on rectification work


Key Benefits of Our Home Buyers Protection Insurance:

    • Conveyancing fees protection up to £750
    • Survey and valuation fees protection up to £500
    • Mortgage and lender fees protection up to £250
    • Gazumping protection for offers that are at least £1000 higher than yours


  • No excess


  • Policy is valid for 120 days or until purchase is completed or the policy is cancelled or a claim is made.

Home Buyers Protection Insurance Covers:

  • Property owner withdrawing the house from the market
  • Property that is the subject of a compulsory purchase order
  • Rectification work is required by the mortgage lender
  • Non-refundable moving costs
  • Redundancy or relocation of full employment (unless redundancy is voluntary)
  • Property valuation is less than 90% of the accepted offer
  • Vendor not legally entitled to the property
  • Property is damaged and it costs more than 10% of the property value to repair
  • Property in England and Wales

Points to remember

Conveyancing must be carried out by a solicitor or licensed conveyancer.

Cover is valid for 120 days from acceptance of the offer or until you make a claim, cancel the policy or complete the property purchase.

The policy DOES NOT cover you if you decide to withdraw the offer of purchase for reasons not included in the policy schedule. For example, you cannot just change your mind and withdraw from the purchase of your buy to let property.

In order to be eligible you need to have written confirmation that your offer has been accepted (email or letter). You should have also either instructed your buy to let solicitor/conveyancer or submitted your mortgage application.

NO surveys should have been carried out on the property. If a survey has been carried out but you have not been made aware of the results you may still be able to protect your purchase.


Get a conveyancing quote WITH Home Buyers Protection Insurance included here Exchange Insurance Conveyancing Quote