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Home buyers’ insurance

Secure your new home with confidence — plus enjoy exclusive Clarity Compare rewards* just for you.

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Home Buyers Insurance

Looking to buy a home? Home buyers insurance can offer valuable protection if your property purchase falls through unexpectedly. It’s one of several important policies to consider during the buying process — helping you stay protected from the very start. While Clarity Compare doesn’t compare home buyers insurance directly, you can explore and compare a wide range of home insurance quotes today to find the right level of protection for your property.

Do I need insurance when buying a house?

You’re not legally required to have insurance when buying a home — but it can offer valuable peace of mind.

Home buyers insurance (also known as home buyer protection insurance) can help cover certain costs if your purchase unexpectedly falls through.

While buildings and contents insurance aren’t mandatory by law, your mortgage provider may require buildings insurance to be in place from the moment contracts are exchanged. It’s a good idea to compare policies early so you’re covered when it matters most.

What is home buyers insurance?

Home buyers insurance is a standalone policy designed to protect you if your property purchase falls through. It can help you reclaim some of the upfront costs — such as valuation fees, conveyancing charges, or mortgage arrangement fees — up to set limits.

This type of cover is separate from standard home insurance and specifically supports you during the buying process.

What other types of insurance should I consider when buying a property?

While home buyer protection insurance covers the risk of a failed purchase, there are other types of insurance to think about when moving into your new home. These can help protect the building itself, your belongings, and your move.

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Buildings insurance

Buildings insurance covers the structure of your home — including walls, roof, windows, and permanent fixtures like your kitchen or bathroom. If you have a mortgage, your lender may require this cover from the point you exchange contracts. You’ll need enough cover to pay for a complete rebuild if necessary. This is known as the rebuild value and is often lower than the property’s market value. We’ll help you estimate this when you get a quote with us.

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Contents insurance

Contents insurance protects the things inside your home — such as furniture, appliances, electronics, and clothing. If you’re buying new items for a larger home, you may want to increase your level of cover. Conversely, if you’re downsizing, you might need less.

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Goods in transit insurance

Moving day is a key moment to think about insurance. Some home insurance policies include cover for removals if you’re using a professional removal firm. This may help protect your belongings while in transit. If your existing policy doesn’t include this, you might be able to add it as an optional extra.

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What does home buyers insurance cover?

Home buyer protection insurance can offer peace of mind by helping you claim back eligible costs if your purchase is unexpectedly cancelled due to reasons beyond your control, such as:

1. Gazumping

where the seller accepts a higher offer after already agreeing to sell to you.

2. Chain collapse

if another transaction in your buying chain falls through, affecting your own purchase.

3. Down valuation

when the property is valued lower than the agreed sale price, leading your lender to reduce or withdraw the mortgage offer.

4. Seller withdrawal

the seller simply changes their mind and decides not to sell.

5. Negative survey findings

major issues like subsidence revealed in a home survey could cause the purchase to be cancelled.

What isn’t covered by home buyer protection insurance?

While home buyer protection insurance can offer valuable peace of mind, it’s important to understand what it typically won’t cover. Most policies exclude claims if:

The property valuation is more than 90% of your accepted offer (this percentage may vary by provider)
The sale collapses due to delays on your part or you change your mind about buying
You didn’t instruct a solicitor or conveyancer to manage the legal process
You’re entitled to a refund on any of the fees you’ve paid
The purchase falls through due to voluntary redundancy
Always check the terms of your policy carefully to make sure you understand what is and isn’t included before taking out cover.
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Is home buyer protection insurance worth it?

Home buyer protection insurance could be a smart choice if you’re concerned about the risks of a property purchase falling through. In competitive markets or complex chains, this type of cover may help soften the financial blow if things don’t go as planned.

While it won’t take away the stress or disappointment of a failed purchase, it can offer reassurance by covering some of the upfront costs — helping you move forward with greater confidence.

How much could home insurance cost?

Home insurance doesn’t have to break the bank. Depending on the level of cover you need, it could be more affordable than you think:

Buildings insurance

from under £198 a year¹

Contents insurance

from under £64 a year²

Combined buildings and contents insurance

from under £213 a year³

Prices vary based on your home, location, and the type of protection you choose. Comparing quotes can help you find the right cover at the right price.

How can I check if my car is insured?

To find out if your car is currently insured, simply enter your registration number on the Motor Insurance Database (MID). It’s a free and easy tool that confirms whether your vehicle is covered by a valid policy.
Please note: it won’t show the full policy details — just whether insurance is active.

When should I arrange home insurance?

You’ll need buildings insurance in place from the day you exchange contracts—that’s when you become legally responsible for the property.

If you already own a home, you might need cover for both your current and new properties during the transition period.

Moving home?
It could be a good time to review your cover and compare quotes to make sure you’re getting the right protection at the best value.

You can either:

  • Update your existing home insurance to reflect your new address, or

  • Take this opportunity to switch to a better deal with a new provider

Just remember—if you leave your insurer mid-policy, there may be a cancellation fee. But if the savings outweigh the cost, switching could still be worthwhile.

What do I need to get a quote?

While we don’t currently compare home buyer protection insurance, getting a home insurance quote with Clarity Compare is quick and straightforward. To get started, you’ll need to:

  • Share a few details about your new property – including the year it was built

  • Know the rebuild cost of your home (don’t worry, our handy calculator can help)

  • Select the level of cover that suits your needs

If you already have an existing policy, having your current home insurance documents nearby can help speed things up.

Frequently Asked Questions

At Clarity Compare, we don’t just cover standard vehicles — we help you compare insurance options for a wide range of cars, including those that are a little out of the ordinary.
Do I have to buy home insurance through my mortgage provider?

No – while most lenders require you to have buildings insurance in place from exchange of contracts, you’re free to shop around. Clarity Compare lets you compare a wide range of providers so you can find the best value cover, even if your mortgage provider offers its own policy.

You need enough cover to pay for a full rebuild of your home, not its market value. Use our rebuild cost calculator (powered by industry data) or a professional surveyor to estimate the buildings sum insured accurately. Underinsuring could leave you with a shortfall if you make a full claim.

If you’re a leaseholder, the freeholder often arranges buildings cover for the entire block — you’ll usually pay via the service charge. Always check your lease terms to confirm what’s included and whether you need to take out additional contents or accidental damage cover.

Absolutely – contents insurance protects your personal belongings (furniture, appliances, clothing, gadgets, etc.) against risks like theft, fire, or water damage. Even if your mortgage lender doesn’t require it, having separate contents cover can save you significant replacement costs.

Many homeowners find a combined policy more convenient and cost-effective. Insurers often offer discounted rates for bundling both covers, and you only manage one renewal date. Compare combined quotes to see if you can save versus separate policies.

Yes, you can often update your current policy when you move — just inform your insurer of your new address and any changes to rebuild value or contents. However, moving is also a prime opportunity to compare fresh quotes and switch if you find a better deal.

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