Indemnity policy

sheilakp

Hello

Going through moving process & Filling in the forms for solicitor, We have discovered that we need a indemnity policy; we do not have necessary certificate for electrical work done since 2005.
Anyone else had to do that at all?

Thanks in advance for any replies/advice.

Sheila:)

AdrianC

You don't need an indemnity policy. There's nothing to indemnify against - the policy would cover the costs of defending against the local authority taking action for breach of building regs. But they can't do that on work that was completed longer than (IIRC) two years ago.

An indemnity policy may, however, be the quickest, easiest and cheapest way to get the sale moving again, though.

Ithaca

How long ago was the work done?

lincroft1710

1. An indemnity policy is virtually useless, it will only pay out if the council claim the electrical work does not comply with building regs and you have to replace.

2. Councils have many people employed making unannounced calls on unsuspecting households demanding to see the certification of any electrical work.

3. The moon is made out of cheese

Only one of the above statements is correct (or very nearly correct)

agrinnall

lincroft1710 wrote: »

1. An indemnity policy is virtually useless, it will only pay out if the council claim the electrical work does not comply with building regs and you have to replace.

2. Councils have many people employed making unannounced calls on unsuspecting households demanding to see the certification of any electrical work.

3. The moon is made out of cheese

Only one of the above statements is correct (or very nearly correct)

It's no. 3 isn't it? How else can you explain Buzz Aldrin and Neil Armstrong cornering the lunar cheese market in the late 1960s?

silvercar

2005? No one is going to take action on work done 11 years ago.

G_M

The sale of indemnity policies in property sales is as widespread and unnecessary as the sale of damp-proofing.

The benefits of both are (largely) mythical.

david1951

Unfortunately when you are buying with a mortgage common sense is taken completely out of the equation.

Where a cash buyer would simply say to their solicitor "I am aware of the risks and happy to proceed regardless", the mortgage company and solicitor are not qualified or competent to assess whether the lack of building regs. or planning permission will realistically lead to a problem.

The upshot of this is that the buyer or seller pay for an indemnity insurance that in most cases is useless.