Buying a property involves more risks that your clients might think.
It’s time that your clients had the choice to protect their investment from these risks. That choice is HOPP.
The Home Owners’ Protection Policy (HOPP)® works on a ‘no-fault’ basis and it will protect your clients against legal property ownership risks without them having to prove negligence.
We are all prone to making errors from time to time. For a conveyance, the recourse is your Professional Indemnity Insurance (PII). However, this insurance only covers your clients in part, and it won’t pay out for problems that are beyond your control.
What does it cover?
The HOPP protects against known and unknown risks that your client may be exposed to during the home buying process.
Where a known risk is identified during your due diligence, on average every 1 in 5 transactions, this can be added to the policy at no extra cost free of charge.
The HOPP also includes protection against unknown risks – risks that you cannot possibly be expected to identify, such as a mortgage fraud, boundary disputes, seller misrepresentation and lack of planning consents or building regulations.
What does it cost?
For properties with a purchase price of £250,000 or less, the one-off premium for the HOPP is £250 plus Insurance Premium Tax (IPT).
For properties with a purchase price over £250,000, the one-off premium for the HOPP will be charged at 0.1% of the purchase price of the property, plus IPT.
Example costs*
< £250,000 Flat rate £250 + IPT
£350,000 At 0.1% of purchase price - £350 + IPT
£475,000 At 0.1% of purchase price - £475 + IPT
£500,000 At 0.1% of purchase price - £500 + IPT
How does it work?
The HOPP offers comprehensive protection for your clients’ ownership and interest in their home for as long as they own it. It offers protection against risks that, however diligently you carry out your conveyancing practices, you cannot be expected to identify. Offering greater protection to a client than your professional indemnity insurance policy, the HOPP is a policy of ‘first resort’ eradicating the need for your clients to bring a claim at their own cost against any party at fault. The HOPP also provides cover for the client’s lender too, at no extra cost.
*Prices subject to underwriting terms and conditions
