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Possessory title indemnity insurance - what does it cover?
willb400
Posts: 1 Newbie
Dear all,
Have had a look but cannot find a clear answer to this question.
We are in the process of buying a property from a deceased estate. Quite far in to the process we have discovered it has possessory title as the deeds were lost. The house was built by the deceased and lived in from the 1970s until now.
We are in the process of getting indemnity insurance from the seller.
Question is - if in the worst case a claim for possession was made, and it went to court etc, and the other party could prove they had a valid claim, would indemnity insurance mean we would not lose out financially? I.e. if the property was awarded to the other party, would the insurance give us back the market value of the house? OR would we lose the property and all the money we had paid for it? I appreciate indemnity insurance covers the legal fees, but they are quite small fry when compared with losing the entire house and all your life savings (potentially).
I have asked our solicitor this question and they didn't know the answer.
And most advice on forums I have found says that indemnity insurance will cover 'value of the loss of market value and costs incurred' - to me that just means if a chunk of land got taken from your property and it was worth 10k (for example) then your house value might drop by 10k, and therefore you would be covered for that. If you lose the entire property would that mean you would therefore get back the full amount?!
I also can't really find much information on how likely this kind of case is, if for example only once in the last year has it happened then one would assume this is a pretty low risk gamble, if it happens all the time and people lose possession of their house, then something to be more worried about.
Sorry if this is a stupid question, but reading the policy doesn't answer this question to my non legal brain, so hopefully someone more intelligent on here can help!
Many thanks
Have had a look but cannot find a clear answer to this question.
We are in the process of buying a property from a deceased estate. Quite far in to the process we have discovered it has possessory title as the deeds were lost. The house was built by the deceased and lived in from the 1970s until now.
We are in the process of getting indemnity insurance from the seller.
Question is - if in the worst case a claim for possession was made, and it went to court etc, and the other party could prove they had a valid claim, would indemnity insurance mean we would not lose out financially? I.e. if the property was awarded to the other party, would the insurance give us back the market value of the house? OR would we lose the property and all the money we had paid for it? I appreciate indemnity insurance covers the legal fees, but they are quite small fry when compared with losing the entire house and all your life savings (potentially).
I have asked our solicitor this question and they didn't know the answer.
And most advice on forums I have found says that indemnity insurance will cover 'value of the loss of market value and costs incurred' - to me that just means if a chunk of land got taken from your property and it was worth 10k (for example) then your house value might drop by 10k, and therefore you would be covered for that. If you lose the entire property would that mean you would therefore get back the full amount?!
I also can't really find much information on how likely this kind of case is, if for example only once in the last year has it happened then one would assume this is a pretty low risk gamble, if it happens all the time and people lose possession of their house, then something to be more worried about.
Sorry if this is a stupid question, but reading the policy doesn't answer this question to my non legal brain, so hopefully someone more intelligent on here can help!
Many thanks
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