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What is indemnity insurance for my house?

Indemnity insurance for a house is a form of legal insurance for the buyer when the property, or property title, has a defect in it. Indemnity insurance doesn't correct the fault but instead financially secures the buyer should a local authority choose to prosecute due to the defect.

Indemnity insurance for a house is often considered a low cost, quick and easy alternative to actually correcting the defect, but it should only be used as a last resort. Your solicitor will let you know if you should take out indemnity insurance for your home.

 

How much does indemnity insurance for my house cost?

Indemnity insurance is purchased as a one-off fee, so there are no monthly payments. The rate you pay for the insurance depends on the type of insurance needed, level of cover and sometimes the house. It can cost anything between £20 to £500.

 

What does it cover?

Indemnity insurance for your house covers you financially against a local authority taking action against a title defect. It covers the loss of value to the property and any financial loss the owner of the home will incur (i.e., legal costs).

 

How is indemnity insurance for my house arranged?

Normally, the lawyer who oversees the sale of the home will let you know if you need indemnity insurance and will also help arrange this for you. Sometimes it is the seller of the home who is responsible for purchasing indemnity insurance, but they aren't under any obligation to provide indemnity insurance.

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