Indemnity Insurance Policy Cost

Legal indemnity insurance is used to protect the buyer when there is a defect in the title which can't otherwise be resolved (i.e., lack of planning permission). It's often a quick fix to carrying out other steps to correct the fault and, considering what indemnity insurance covers, can be quite cheap. Indemnity policy cost depends on the provider and the circumstances in which the insurance is provided, but it only offers financial compensation and does not directly fix the defect.

When taking out any form of indemnity insurance always check the policy thoroughly for anything that would render the policy useless. Indemnity insurance can be a tricky policy to take out and the worse case scenario is paying for a policy which becomes invalid because a small hindsight in the application.

Indemnity Policy Insurance Cost

The cost for indemnity insurance varies per provider but is offered as an average of £60 - £300. Premiums are often charged on what's known as a "sliding scale", meaning the actual cost of premiums is priced in accordance with the value of a property.

Administration Costs

The indemnity policy cost may be different from the actual policy if you have to pay for additional administration costs. Not all firms charge administration fees but you should always check before taking out a policy so you know exactly what you're paying. The administration fee is normally a one-off payment.


Indemnity policy covers the cost of loss of value to a property for a variety of reasons. The actual coverage you receive depends entirely on the firm providing the cover and the premium you pay.

Types of Indemnity Insurance

The type of indemnity policy may affect the cost. Some types of indemnity insurance are:

  • Absence of Easement (Lack of Rights).
  • Adverse Possession Insurance.
  • Breach of Covenant (Freehold).
  • Flying Freehold Indemnity Insurance.
  • Good Leasehold.
  • Lack of Planning Permission.
  • Unknown Easements/Rights.

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