Indemnity Insurance

northwest1965

If we purchase a property with a flying freehold (we are under someone above) how will indemnity insurance help us.
Would it just be for enforcing the owner above to carry out work BUT NOT pay for it?

sammyjammy

In loose terms yes, google it and you'll get a better descriptions, its likely required by the mortgage lender.

Bigphil1474

The indemnity policy covers you for any financial loss for the issue covered by the policy basically. You need to look at the wording of the policy. It can't enforce anything. 

We have one for if the church come trying to collect money - can't remember the exact wording - but basically there is some historic right for the church to come around demanding money. They won't get any from me anyway, but I will assume the policy covers me should they turn up. We also have one for the extensions. The previous owners were required to get the permission of the builders to have any extension work done, but the builders ceased to exist years before (1960s houses). The policy covers us should anyone turn up demanding money as they didn't ask permission. (All planning and Building Control paperwork was in place).

I think both are pretty much a waste of time, but for less than £100, it got the sale completed. 

Yorkie1

Bigphil1474 said:

The indemnity policy covers you for any financial loss for the issue covered by the policy basically. You need to look at the wording of the policy. It can't enforce anything. 

We have one for if the church come trying to collect money - can't remember the exact wording - but basically there is some historic right for the church to come around demanding money. They won't get any from me anyway, but I will assume the policy covers me should they turn up. We also have one for the extensions. The previous owners were required to get the permission of the builders to have any extension work done, but the builders ceased to exist years before (1960s houses). The policy covers us should anyone turn up demanding money as they didn't ask permission. (All planning and Building Control paperwork was in place).

I think both are pretty much a waste of time, but for less than £100, it got the sale completed. 

I think you probably mean chancel repair liability?

Bigphil1474

Probably.