g
7 minutes When buying a property, you need to have cover to protect the property from the time you exchange contracts. These policies are not connected with protecting your mortgage repayments (see Insurance - income and family protection) but about the house itself - your new home.
Many new homeowners find the best deal in policies that specifically cater to their situation, such as new home buyers insurance, which often includes cover for unexpected delays or cancellations. It’s important to explore your options thoroughly and compare home buyers protection insurance deals before committing. This ensures you're not overpaying and that you’re covered for the right risks when buying your new home.
Guides like our Home buyers insurance section help you to choose the range of products available and highlight what to look out for. Even if you don't need every type of cover listed below, do read all of the options available.
Home Buyers Protection also known as Residential Abortive Transaction Insurance(RATI) or 'Gazumping Insurance' covers you for certain costs if a house purchase falls through - these can include solicitor and mortgage fees and survey inspection fees incurred - the insurance may activate as a result of a house seller selling to a higher bidder or withdrawing the house or as an example, when your home surveys uncover major problems that stop you buying the house.
This type of insurance is used when you don't or can't resolve an issue relating to the property. An example is non conformity with building regulations for part of the house which you became aware of after buying the house. It is a once off cost.
Some house or lands may have limitations on use ('covenants') - examples are that a business cannot be carried on or that only one house can be built on the land. If it appears unlikely that the covenant will be enforced (only the 'owner' or beneficiary of the covenant can enforce it), you can take out a Restrictive Covenant Indemnity Policy that insures against the risk of the covenant being enforced. It is usually a small sum of money and either the buyer or seller pays for it.
A converted barn or church can be considered as a 'different type of construction' by insurers who may offer a special 'Converted property Policy'.
Timber frame, steel frame or a thatched roof are considered as non standard and companies will offer dedicated policies.
If your property is built on land that was once or is considered 'Church/Rectory land', you may be partially responsible for church repairs. Your solicitor can check this before buying ('Chancel Check') and the insurance fee is fairly small.
'House insurance' is a general term for insuring both the building and the contents. Get insurance quotes for the house at an early stage as if they are high it can indicate insurers are aware of known problems with the house or area such as flood risk or crime levels and it may have a big impact on selecting a property. Flood and subsidence cover should be included.
Buildings Insurance must be active from the moment of Exchange of Contracts as that is when the buyer becomes responsible for the property.
If you had a leaking radiator pipe underground for example, it covers the cost of detecting where the leak is - other clauses in the insurance policy may cover the repair cost.
This is usually included but check the definition of a storm - it may state that the wind has to reach a certain speed or a minimum amount of rain or snow has to fall. Sheds and fences external to the main property may be excluded.
This protects you for costs due to property damage caused unintentionally by anyone in the house including guests. It may also cover some damages caused as a result of a storm - for example a storm could break a window and any rain entering might 'accidentally' damage a carpet. DIY work may not always be covered by these policies.
Protection when you have paying guests (if you rent out a room for example).
An option that can cover the costs of damage/repair/replacement due to boiler, leaks or drainage issues for example. Always ensure that you have coverage for drainage damage/collapse and repair and subsidence caused by drainage problems.
A special type of insurance for homes with flat roofs which some companies consider as 'non standard construction'.
It may be required if the seller tells you that they do not know if knotweed is present on the property. You may want to buy it in any case if there has been knotweed treatment at or nearby the house.
Work from home insurance may be required to cover your business equipment and public liability to protect business visitors. If you store business materials at home such as flammable products like paint tell your insurer.
Check every policy in detail and make sure that 'policy exclusions' (what is not covered) do not leave you exposed to unexpected costs or losses.
You need this immediately you buy the property as you transfer your furniture etc. to your new home. Include the costs of new items that you are buying such as a new washing machine or oven. If you have high value items such as expensive jewellery or a piece of art, you may need 'high-value home insurance'.
This policy covers 'tech' items such as computers, mobile phones, smart watches and games consoles. It can include an extended warranty after the manufacturers guarantee expires, loss and theft as well as losses on the e-wallet and costs of unauthorised calls.
Subsidence is property movement down into the ground, heave means upwards or sideways movement and landslip occurs when a large piece of ground (not just the house) moves. If your property or a neighbouring property suffered any of these problems, you should investigate the reasons and consider cover.
Underpinning is a method of supporting a property that has previously had subsidence problems typically - it often involves injecting concrete under the walls to give more structural support to the property. If a property has been previously underpinned, you must inform the insurance company as not all companies offer cover for this type of property and you may have to buy 'Subsidence and underpinned property insurance'.
This is needed when you house is going to be empty for longer than a simple holiday as allowed by your usual insurance policy. It can be for a term of 3-12 months and may be needed for your old home before it sells or for your new home if you do not intend to move in immediately.
If you are intending to carry out renovation works you should inform the insurance company and all contractors must have their own Public Liability insurance cover to protect you. You may have to take out a 'Renovation Insurance Policy' or 'Building work insurance' as it is often called during building works.
Check that your policy extends to all buildings and not just the home.
This may be covered by other policies but check - you need it to protect from loss or damage when goods are in transit during the house move. If you use house movers, use a reputable company and check their insurance policy.
Get a quote for this before you buy a new home as it is a 'check' on the house and area - it can indicate just how safe the neighbourhood really is - it rises if there is a problem with car vandalism or theft.
Insurances are essential to reduce your risks but they do not cover you for negligence so you should read about Buying a house without an inspection survey and to see how important a pre-purchase survey is when buying insurance cover, read our detailed article on the Importance of House Surveys and Insurance.
Check Home Buyers Checklist for utilities which details the main services (gas, electricity, internet etc.) and get quotes for these before buying a home.
As you can see, when stepping onto the property ladder, it’s crucial to understand the insurance needed when buying a house, especially for first-time purchasers. Products like home insurance for first time buyers and first time homeowners insurance are different names for the same product providing essential cover for unforeseen issues. Many providers offer tailored packages with options such as legal assistance or survey protection depending on the policy - ask for what options are available as you can save money!
The Best home insurance for first time home buyers will cover not just the basics at the best price but will include the essential options such as contents cover and accidental damage protection.
To choose your home buyers protection insurance, compare offerings and always try to get more than just basic cover. You may come across specialist products like basic house buyers insurance or house buyers protection insurance, which cover risks such as failed purchases or seller withdrawal. If you’re buying a house insurance before completion, make sure you’re covered from exchange onwards. Some policies also combine buying a house building insurance with liability cover, offering broader protection. In certain cases, indemnity insurance for house buyers may also be required, particularly if there are legal uncertainties or missing documents during the conveyancing process.
last updated December 7th, 2025