Learn about house indemnity insurance here

If you've ever bought or sold a house, it's likely that you'll have at least heard mention of house indemnity insurance before. It's probably one of the least well understood insurance policies around, mainly because it is not needed in many cases.

House indemnity insurance is a policy taken out by the seller of a house to cover themselves in the eventuality of something going wrong with the house, caused by a condition that was pre-existing before the sale. This doesn't include things like structural damage, but instead covers external factors, like potential radioactivity of land if the house was built near a large industrial estate, for example.

Generally before selling or buying a house, a conveyancing solicitor will take a look at any potential issues on the horizon and offer their advice as to whether they feel a house indemnity insurance policy is required.

It's worth remembering that the conveyancing solicitor is merely looking to protect the best interests of both yourself and your mortgage lender, if you are buying with a mortgage. The last thing either party want is for a sale to go through, only to find that a pre existing external condition has had a huge impact on the value of the property.

Once you have established whether or not such a policy is required, you can ask for advice on where to take one out from the conveyancing solicitor whose job it is to offer you impartial advice on such matters, or you can do what we love to do and hit the internet.

Remember that this is a highly specialised area of insurance though, and you may be better off simply following the conveyancing solicitor's advice to the letter.

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