A GUIDE TO BUYER S PROTECTION INSURANCE.

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1 BUYER S PROTECTION INSURANCE A GUIDE TO BUYER S PROTECTION INSURANCE. Our competitive Buyer s Protection Insurance makes sure your clients are covered should the unexpected happen when they re buying a new home. Read this handy guide to find out more. FOR PROFESSIONAL USE ONLY INSURANCE. SAVINGS. INVESTMENT MANAGEMENT.

2 2 BUYER S PROTECTION INSURANCE ADVISER GUIDE STAY AHEAD OF THE COMPETITION.

3 BUYER S PROTECTION INSURANCE ADVISER GUIDE 3 BENEFITS OF BUYER S PROTECTION INSURANCE FOR YOU, THE ADVISER Only sold by qualifying Representatives. Buyer s Protection Insurance can help you provide your clients with a superior service and can give you the competitive edge over the competition. It is excellent value for money, providing up to 600 of cover for your clients. As a valuable lead generation and retention tool, you can ensure your client comes back to you should their house purchase fall through. Since its launch, Buyer s Protection Insurance has become increasingly popular and in many businesses now forms an integral part of the referral and sales process. There is no commission payable on the sale of this cover. ADDING VALUE TO YOUR BUSINESS Buyer s Protection Insurance is an excellent added value product that can increase both lead levels and appointment conversions when used to its full potential. Buyer s Protection Insurance is designed to: increase referrals increase appointments to sign ups lock the client into the service increase mortgages applications from clients purchasing property elsewhere help secure instructions reduce cancellations. BUYER S PROTECTION INSURANCE AS A LEAD GENERATION TOOL One of the most effective ways to use Buyer s Protection Insurance is to build the product into your mortgage adviser referral process. Estate agency staff can introduce Buyer s Protection Insurance by providing the client with the promotional leaflet, this could happen when: the client registers to look for property with the estate agency the client agrees to purchase a property through the estate agency. AND RETENTION TOOL! It is also a lock in tool that you can use to ensure your client returns to you to arrange their subsequent mortgage application. At the appointment the adviser sells the benefits of Buyer s Protection Insurance: MA: The land search fee and valuation are the costs that are payable up front, whether the purchase proceeds or not. What I can do is offer you an insurance that will refund these costs up to a maximum of 600, in the event of the seller withdrawing, adverse survey or land charges search or a change in circumstances (redundancy/relocation/death). This is part of the mortgage broking service I offer and is available to you whether you buy a property through this adviser or not. SETTING YOURSELF ABOVE THE REST You have the option to either charge the client or to cover the cost of Buyer s Protection Insurance yourself as part of the service you offer. With up to 600 worth of cover for your client it really is great value for money, irrespective of who is paying for it. Especially when you consider the commission it could make for you from their business. This booklet provides you with product details, sales angles, questions and answers, customer lead generation and retention tools and outlines how the scheme will work for you and your client.

4 4 BUYER S PROTECTION INSURANCE ADVISER GUIDE HOW BUYER S PROTECTION INSURANCE WORKS In order to be eligible to have Buyer s Protection Insurance cover the client has to either: arrange their mortgage through you, or buy the associated life policy or any other mortgage related policy through you if the mortgage has already been arranged direct, but only when the valuation or land charges search has not already taken place. Buyer s Protection Insurance is designed to protect your client against financial loss if their house purchase falls through due to gazumping, adverse valuation or land charges search or a change in your client s circumstances, for example involuntary unemployment. In the event of your client s house purchase falling through, your client can claim for the following to be reimbursed, subject to them returning to you to arrange a subsequent mortgage or mortgage related policy. Up to 600 legal and/or survey fees incurred on a house purchase should it fall through. Lender arrangement fees are covered only if there is a free valuation on the mortgage scheme chosen. Claim form Voucher

5 BUYER S PROTECTION INSURANCE ADVISER GUIDE 5 INTRODUCTION TO BUYER S PROTECTION INSURANCE Client Accepts Certificate Completed Top copy for Client Certificate Distributed Bottom copy for you Middle copy send to Client Retains Record only Load to system Sale Falls Through Bank Payment Client calls for Claim Form Dispatch Form You Validate Claim* Client Returns Claim Form with Invoices Validates Claim* Yes No Client Arranges New Mortgage Voucher issued by You Validate Voucher* * Further procedures to deal with appeals and complaints sit above this process. Client Returns Voucher and Invoices to Issue Cheque to Client END OF PROCESS

6 6 BUYER S PROTECTION INSURANCE ADVISER GUIDE QUESTIONS AND ANSWERS. CLIENT QUESTION: WHY DO I NEED THIS COVER? Your answer: In the early stages of a home purchase a valuer will carry out a valuation and a solicitor will do some initial enquiries. These costs will be lost if the transaction falls through. Buyer s Protection Insurance provides cover for those costs in three situations. This insurance covers gazumping. This is when your vendor decides to withdraw from the purchase and accepts an offer from another potential buyer. The insurance also covers you withdrawing from the purchase if you receive an adverse valuation or land charges search. This must devalue the price by at least 5% or, in the case of an adverse survey, involve remedial work that is more than 5% of the original valuation. Finally you are covered if your personal circumstances change due to the death of you or a member of your immediate family, redundancy or relocation and you withdraw from the purchase. CLIENT QUESTION: WHAT IS NOT COVERED? Your answer: If you decided to withdraw from the purchase out of choice, or if your vendor withdraws due to an unreasonable delay on your part. Unreasonable delay would be any delay caused by your actions whether preventable or not, leading to the vendor being unable to complete the sale within a realistic period of time. This includes the breakdown of your chain, illness or bereavement other than from the loss of an immediate family member. CLIENT QUESTION: WHAT EXPENSES CAN I CLAIM FOR? Your answer: The policy covers up to 600 of certain pre-sale costs. This includes valuation and legal fees. Lender arrangement fees are covered only if there is a free valuation on the mortgage scheme chosen. CLIENT QUESTION: HOW IS THE CLAIM PAID? Your answer: On acceptance of your claim, you will receive a voucher for the amount of your valuation and fees (subject to the policy limit). You will be able to redeem this voucher when you return to your Representative to arrange another mortgage. You will be asked to pay for the new valuation and fees, but we will send you a payment once we have received your validated voucher. CLIENT QUESTION: WHY DO I HAVE TO RETURN TO THE SAME LEGAL & GENERAL REPRESENTATIVE? Your answer: This scheme is only sold by trained Representatives in England and Wales. Because of this they can validate your claim without a lengthy process and therefore keep the price of the policy down. CLIENT QUESTION: DO I HAVE TO ARRANGE ANOTHER MORTGAGE? Your answer: Yes. We can only redeem the voucher against the costs of arranging a new mortgage. If you withdraw from the market for longer than six months the certificate is no longer valid. CLIENT QUESTION: HOW LONG IS THE COVER FOR? Your answer: The policy provides protection for up to three months. However the voucher you receive is valid for six months after it is issued. We find that most people find another property within that time and benefit from the policy. Important: When selling the benefits please also ensure you make the customer aware of the exclusions. For more details see the policy wording.

7 BUYER S PROTECTION INSURANCE ADVISER GUIDE 7 CLIENT QUESTION: WHAT HAPPENS IF FOR SOME REASON I CANNOT RETURN TO THE ORIGINAL ADVISER? Your answer: If you cannot return to the original adviser, please inform our claims department and we will try and resolve the situation. CLIENT QUESTION: IS MY CERTIFICATE VALID FOR MY REARRANGED MORTGAGE? Your answer: No, but your Representative can arrange new insurance to cover your new house purchase. You can take out a new policy as many times as you need. CLIENT QUESTION: WHAT IF I LOSE MY CERTIFICATE Your answer: Both your Representative and our claims departments have copies of the certificate. Please contact either of them for your certificate number. CLIENT QUESTION: I AM UNHAPPY OR I HAVE A COMPLAINT, WHO DO I CONTACT? Your answer: If you are dissatisfied with any aspect of the cover please contact your Representative or our claims department. If the matter is still unresolved please write to the, Insurance Limited, The Podium, Centre City House, 5 Hill Street, B5 4US. Any complaints we cannot resolve will be referred to the Financial Ombudsman Service. CLIENT QUESTION: CAN I USE BUYER S PROTECTION INSURANCE FOR A REMORTGAGE? Your answer: No. This cover is not suitable for remortgages as there is no risk of gazumping and the other conditions of eligibility to claim cannot be fulfilled. CLIENT QUESTION: I WANT TO BUY A PROPERTY OUTSIDE ENGLAND OR WALES. CAN I TAKE OUT BUYER S PROTECTION INSURANCE? Your answer: Buyer s Protection Insurance is not appropriate if you are purchasing a property anywhere outside England and Wales including Scotland, Northern Ireland, Republic of Ireland, Channel Islands and Isle of Man.

8 Insurance Limited Registered in England No Registered office: One Coleman Street, London EC2R 5AA We are authorised and regulated by the Financial Services Authority We are members of the Association of British Insurers. (FSA Registration Number ). CW /11