What is Indemnity Insurance? Do I need it?
Indemity Insurance is a policy which generally covers issues which may arise relating to the property deeds, planning permission or building regulations when buying a property. Indemnity Insurance may be needed, for example, in the event of the conveyancer being unable to find the completion certificate to prove that the property was built in line with building regulations.
Unlike other insurance policies an indemnity insurance policy is a one-off premium which doesn't need to be renewed when the property is sold next. Depending on the circumstances the premium is paid by either the buyer or the seller.
Although there is no legal requirement to take out Indemnity Insurance some mortgage providers may make it a condition of their mortgage offer. Your conveyancer or legal advisor would be able to advise you as to whether the policy is needed and if so what it does and doesn't cover.
20th July 2016
DISCLAIMER: Neither ludlowthompson nor their ‘experts’ take any responsibility for any action or loss incurred by readers of these pages. The reader acts on advice at their own risk. Answers to questions are not exhaustive. Financial advice must always be sought from a professional financial adviser
FREE & INSTANT PROPERTY VALUATION
IN JUST 60 SECONDS