Indemnity Insurance

JulieH

We are in the process of selling our house, and have been asked by our buyers solicitors to get indemnity insurance. This is because we don't have the right certificates for the new boiler we had 2 years ago (fitter is blaming Corgi and they are blaming him!).

Could anyone explain what it is? Obviously I know it's insurance against anything going wrong with it, but it's only a one off payment of £12.76 which I thought was very cheap! A friend has told me it means we will be liable to pay if anything goes wrong with it....but surely that's what the insurance is for?

Thanks!

Richard_Webster

Building Regulation Indemnity Insurance pays out only if the Council take enforcement action because work does not comply with the regulations. Enforcement action when the work is over a year old is very unusual indeed, almost unknown, in fact.

The policy dies not pay out if the there is damage caused by structural failure etc. The policies are mainly needed because mortgage lenders worry about these details and it is quicker to get a policy and get the transaction moving than to try to convince a bureaucratic lender that they are worrying about nothing.

JulieH

That's great, thank you Richard. Might aswell pay the £12 to keep things moving then!

Thanks.