Canopius has launched a homebuyer fees insurance product designed to protect homebuyers against the loss of fees in case a property purchase fall through for a variety of reasons.
Following a pilot with specialist insurance broker Surewise.com, the product will be broadly available via IFAs, mortgage intermediaries and insurance intermediaries.
A survey by Which? revealed that around a third of recent purchases had fallen through, at an average cost to homebuyers of almost £3,000.
With 80% of UK mortgage transactions arranged through an intermediary, Canopius anticipates the product will be either sold by them, or offered as a valued-added service to homebuyers as an incentive to use their services.
David Swan (pictured), head of mortgage, specialist consumer products at Canopius, said: “With a proportion of UK house purchases collapsing even after offers have been accepted, we are pleased to offer homebuyers indemnity against the loss of fees in this increasingly common circumstance.
“The product is extremely cost effective, provides certainty for buyers at an emotionally and financially vulnerable time and enables them to acquire their new home without incurring any unnecessary expense in lost fees.”
Stuart Bensusan, business development director at Surewise.com, added: “This is a highly under used product that combats some of the key problems in the English and Welsh property markets, such as gazumping. We are delighted to partner with Canopius and their intermediaries to help raise awareness that protection exists for home buyers.”