What does 'Indemnity Insurance' mean when buying a property?

Find out what Indemnity Insurance means when you are buying a property. 'What does Indemnity Insurance mean?' plus over 150 other property related terms and jargon in plain English

Indemnity Insurance

Where there is an issue with a property that cannot be solved reasonably quickly indemnity insurance can be used.

As an example, 15 years ago a property owner replaced a basement window with a larger one but never got planning permission to do so and he should have done.

You now want to buy the property but what happens, after you move in, if the local authority come knocking at your door and demanding you put things back as they were. That could be costly.

So you take out an insurance policy that says "Should the local authority ever pursue the matter the insurance company will pay the costs".

Indemnity Insurance can be used in much larger situations. Here's a real example:

There is major development in North London which consists of around 50 apartments. The developers purchased the land for it ... except for a small strip between the entrance to the development and the public road because no one could not find the owner of the land. They had been missing and uncontactable for years, perhaps they were no longer even living.

So the building work could go ahead they took out indemnity insurance so that if the owner (or whoever inherited the land after his or her death) ever appeared they would have a multi-million pound pot with which to deal with the situation. It could be used to make the owner a generous offer, fight a court case or in the most extreme situation buy the apartments in the development from their owners because they would no longer have access to them.

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Indemnity Insurance

What's in the 2022 edition .....

Why buying property is right for some and wrong for others;
The state of the market today;
What Brexit and Covid 19 means to the future of UK property;
How the media have become unreliable indicators of the market;
Who makes good quality predictions for the property market (and who doesn't);
How the market works over the short term and the long term;
The difference between property bubbles and property booms;
Why it can be a good idea to buy when prices are falling;
The principles of buying a property to let and what the text books don't tell you;
Ways to get on the property ladder when it looks impossible;
How professional buyers and investors work with estate agents to get better deals;
Why you should see as many Financial Advisors as possible;
What to do before you start viewing so you don't lose your dream home;
Who the surveyor, solicitor and estate agent are really working for;
How to make an offer to get things your way;
Who to trust and who, with the best intentions, may be misleading you;
Why you should work to minimise the time between offer agreed and exchange;
Making sense of a property survey including:
- What type of survey to get and why structural surveys can be money wasted;
- Why surveyors should never estimate the cost of works;
- When rising damp, penetrating damp, subsidence, cracking, sagging roofs, bulging walls and all the other frightening things in a surveyor's report might be serious, and when they are not;
- Why asking the vendor to carry out work is not always a good idea.
Step by step guides explaining what should be happening, what can happen, and how to solve mole hills before they become mountains;
Over 140 terms in an easy to use glossary so the jargon of the property industry can be understood;
20 true stories of successes, and disasters, that real people experienced when buying a property.

.... and what's not in the book ...

Continuous commentary banging on about how great property is and that it is the only place to put your money!
Recommending businesses that I get kickbacks from.
Rewording and republishing what is available freely from most websites anyway.
Endless tales of how easy it is to buy property and profit.
Attempts to sell you some course or other product.
Blank pages and spaced out text to make the book seem bigger.