An indemnity insurance policy is a common solution to problems and defects discovered during the conveyancing process.
Conveyancing solicitors routinely propose indemnity insurance as a resolution to problems that might be costly, time-consuming, or even impossible to resolve.
Examples of problems often addressed by taking out an indemnity policy include:
- Alterations carried out without planning permission
- Electrical works that were not signed off
- Windows fitted without a FENSA certificate
- Missing building regulation
- Problematic restrictive covenants - e.g. preventing you from running a business from home
Indemnity insurance will cover the owner of the property against the costs of remedying the problem. The policy should also cover any diminution or reduction in the value of the property.
An indemnity policy can be taken out by a buyer or seller during the conveyancing process.
Indemnity insurance is provided in return for a one-off payment and is transferable to new owners.
Chris Salmon, Director
About the author
Chris Salmon is a co-founder and Director of Quittance Legal Services. Chris has played key roles in the shaping and scaling of a number of legal services brands and is a regular commentator in the legal press.