Home Sellers Protection Insurance (sometimes called seller insurance or sellers insurance) helps protect you from losing money if your house sale falls through. Around 1 in 3 property transactions fail to complete, often leaving sellers out of pocket on conveyancing and legal fees.
If your sale collapses for reasons beyond your control, this type of insurance can refund costs you’ve already paid, such as conveyancing fees, searches, and legal expenses.
At Compare My Move, we don’t provide this insurance directly, but we can connect you with trusted house sale solicitors who can advise you on whether Home Sellers Protection Insurance is right for your situation and help arrange the policy if needed.
How Does Home Sellers Protection Insurance Work?
Once you’ve accepted an offer on your property, you’ll start the conveyancing process, and costs begin to build. These can include your solicitor’s legal fees and non-refundable disbursements, such as Land Registry title documents, ID verification checks, and bank transfer fees.”
Home Sellers Protection Insurance covers those costs if your sale falls through. Policies are typically priced at around £65–£70. Cover usually lasts for around 180 days and must generally be taken out within 7 days of accepting an offer, as indicated in standard insurer eligibility criteria.
If your sale fails for a covered reason, you can claim around £1,500–£1,650, depending on your chosen insurer. Once a claim has been made or the policy period ends, a new policy must be taken out for any future sale.
Data taken from Rhino Home Protect and Lloyd & Whyte Community Broking
The property must be located in England, Wales or Northern Ireland. As the process of selling a home in Scotland differs from the rest of the UK, sellers in Scotland cannot apply for Home Sellers Protection Insurance.
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When to Take Out Home Sellers Protection Insurance
To be eligible, most insurers require you to take out the policy within 7 days of accepting an offer. Here’s the typical timeline:
- Accept the offer on your property
- Purchase Home Sellers Protection Insurance within 7 days
- Begin the conveyancing and legal process
- If your sale falls through for a covered reason, submit a claim
- Take out a new policy for any future property sale
Tip: You can’t claim for costs paid before the policy started, so it’s best to arrange cover early, ideally before paying any solicitor fees.
What Does Home Sellers Protection Insurance Cover?
When a sale collapses through no fault of your own, Home Sellers Protection Insurance helps recover your upfront costs.
While cover varies by provider, most policies include protection against:
- Adverse search results: During the house-buying process, the buyer’s conveyancer will undertake conveyancing searches. If the buyer's conveyancer finds adverse search results (such as flood risk or planned nearby development), the buyer may withdraw. Your policy can refund your conveyancing fees.
- Low mortgage valuation: If the buyer's mortgage valuation is lower than the agreed price, the lender may not offer enough funds, forcing the buyer to pull out.
- Structural or survey problems: While not legally required, it's recommended that the buyer arrange a property survey. A RICS Home Survey can uncover structural defects or safety issues that make the buyer reconsider the purchase. The policy can cover your legal costs in this situation.
- Buyer's personal circumstances: Life events such as redundancy, illness, or bereavement may cause the buyer to cancel the sale, another scenario usually covered by the insurance.
What Isn't Covered by Home Sellers Protection Insurance?
Most insurers exclude cover for:
Commercial or business properties
Costs incurred before the policy start date
Conveyancing fees that can be refunded elsewhere
Pre-existing issues already idenfified before taking out the policy
Seller-caused delays or cancellations
Voluntary redundancy or personal decisions to withdraw from sale
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Eligibility Criteria
You can apply for Home Sellers Protection Insurance if:
- You're 18 or over
- The property is a permanent residential structure (not mobile or temporary)
- A solicitor or licensed conveyancer is managing the sale
- The sale is not part of a sealed bid or contract race
- The property is in England, Wales, or Northern Ireland
If you're selling a buy-to-let property or your main home, you'll typically still be eligible.
Is Home Sellers Protection Insurance Worth It?
With around one in three sales failing, many sellers find the small upfront cost worthwhile. Average conveyancing fees for sellers are around £800 - £900, and the policy can refund most of that if your sale collapses for a covered reason. From an offer getting accepted to completion is a long process and the sale could fall through for many reasons.
While this insurance offers reassurance, it’s not mandatory, and your conveyancing solicitor can help you decide whether it’s suitable for your property sale. If you are looking to buy a home as well as sell your current home, you can make an offer on a house before selling your home. This adds more risk as your current home has not been sold yet which makes getting home sellers protection insurance even more important in this case.
Find a Conveyancer Who Can Advise You
A conveyancer can help you with more than just conveyancing, they can also advise you on what you can and can not disclose when selling your home. If you’re selling your home and want guidance on Home Sellers Protection Insurance, we can help.
At Compare My Move, we’ll connect you with up to 5 verified conveyancing solicitors who can:
- Explain how seller insurance works
- Help you understand your eligibility and policy options
- Manage your sale efficiently to minimise risk
Save an average of £900 on conveyancing and get expert support every step of the way.
We can connect you with up to 5 conveyancers in your local area. They can advise you on the right policy for your property. Simply fill out our online comparison form to compare conveyancing quotes and save today.
FAQs
Can I get Home Sellers Protection Insurance after accepting an offer?
Yes, most insurers allow you to take out a policy within 7 days of accepting an offer.
Will I be covered if I've already paid some fees?
You can only claim for costs incurred after the policy starts, so any payments made before that won’t be refunded.
Who pays for the insurance — the buyer or seller?
This type of insurance is taken out by the seller, as it protects your costs, not the buyer’s.
What happens if I’m selling in Scotland?
Because the property process differs, Home Buyers Insurance isn't available in Scotland.
What are the main reasons house sales fall through?
Common reasons include mortgage valuation issues, bad survey results, chain breaks, and buyer personal circumstances such as redundancy or illness.
