Understanding Title Indemnity Insurance Cover

What Does Title Indemnity Insurance cover?

The process of buying a property can be complicated, with unforeseen issues occurring at the last minute. To protect yourself against loss of funds related to a purchase or sale of a property, Title Indemnity Insurance is key.

While most people understand that following on from a surveyor’s report property repairs might need to be undertaken before the sale can commence, there are other risks associated with the sale of a property that can be overlooked. Title Indemnity Insurance can cover costs incurred around details that may be raised on a legal level both now and in the future. Here are a few common issues often found during the conveyancing process.

Rights of Way

If you need to access your neighbour’s property to gain access to certain parts of your property, such as your garden, drains or a driveway, Title Indemnity Insurance can cover legal fees should a legal battle arise if your neighbours block your access.

Lack of Planning Permission

If your property has been altered or extended without the correct planning permission, Title Indemnity Insurance can cover associated legal costs or loss of value should the alterations (such as an extension) be challenged now or in the future.

Missing Documents

Land Registry documents can date back decades and have been known to go missing. Deeds and other relevant documents connected to your property might have been lost over the years. Title Indemnity Insurance can cover the cost of any expenses incurred to locate or replace them.

Building Regulations and Lack of Documentation

Building works that have been carried out on the property without the correct permissions, without regulations being adhered to, or missing paperwork to that effect, can result in you being required to rectify the building works. Title Indemnity Insurance can cover the costs of any restorative building works that you may need to do.

Restrictive Covenants

Should the property have a covenant preventing you from altering the property, for example, building an extension or free standing structure, and the previous owners have been unaware or ignored the restrictive covenant, you could face a claim made against you because of the previous owners’ actions. Title Indemnity Insurance can cover the costs of any upheld claims or legal fees incurred.

Rights of Light

This relates to the amount of light your property receives. Should a new building, for example, a new development, be proposed or implemented which affects the light entering your home, you have the right to take action. Legal, advisory and research costs incurred can be covered by a Title Indemnity policy.

Chancel Repair Liability

If you live close to a church you could be responsible for paying some of the costs of repairs made to it. Title Indemnity Insurance can be used to cover the costs of repairs you’re responsible for.

Who buys Title Indemnity Insurance?

The buyer of a property usually buys this type of insurance; however, the policy relates to the property, not the individual policyholder. Bearing this in mind, the policy can be purchased by the seller as an additional incentive for the buyer of the property to follow through with the sale, as Title Indemnity Insurance can potentially protect the buyer.

Do you have to have Title Indemnity Insurance?

You don’t have to take out Title Indemnity Insurance, but it can act as a safety net should any issues arise. It can also encourage a sale to go through at a faster pace than if it is held up by any issues cited above. Some solicitors will advise you obtain this type of policy as it protects the mortgage lender and could help you secure a mortgage.

If in doubt, don’t leave it out

If you’re in doubt as to whether you need Title Indemnity Insurance, talk to our experts. They can advise on whether it will add to your chances of securing a mortgage and protect you against issues that could arise in relation to your property. Some older properties can have unique covenants and restrictions attached to them, so Title Indemnity cover could be a good option.

Why choose us?

Lloyd & Whyte Community Broking leverages big business whilst maintaining a local business ethos. We use our knowledge and expertise to provide insurance with a personalised service. We build long-lasting relationships with our clients which includes face to face meetings, accessibility, and a personalised service.

Not just another insurance business

We are proudly part of the Benefact Group, a group of financial services companies with a difference. From over 5 million companies in the UK, the Benefact Group is the third-largest corporate donor, giving all available profits to charities and good causes.1 Since 2014 it has given nearly £200 million and aims to give £250 million by 2025.2

To book a meeting or to discuss Title Indemnity Insurance for your property with our helpful team of experts, please contact us.

Contact your local community broking team to discuss the most suitable policy for you.

  1. DSC – The guide to UK Company Giving 2022-23

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