The A-Z of Legal Indemnities

The A-Z of Legal Indemnities

Legal Indemnity Insurance protects the insured from property disputes and the potential losses and legal costs resulting from legal challenges to their property.

There are many different Legal Indemnity products out there and it can be difficult to understand what these are and if you require that protection. Therefore, we have created a glossary of the most common Legal Indemnities to assist you.  

If you require more information or would like to discuss your Legal Indemnity requirements further, please give our team a call on 01789 761660.

Absence of Easement / Access Indemnity

Protection against interference with the use of the property due to a lack of legal grant for access and/ or services to a property.

Breach of Planning Indemnity

Protection against enforcement action by the local authority in respect of lack of appropriate consents for alterations/ use of the property.

Also sometimes referred to as Building Regulations indemnity and Listed Buildings Consent Indemnity.

Chancel Repair Indemnity

Protection against a liability to contribute towards the repair of the Chancel of a church.

Defective Title Indemnity

Protection in the event of a third party attempting to enforce an estate right or interest of the Insured’s title to the property and/or prevent the Insured’s use of any right of way or easement necessary for the enjoyment of the property.

Enforcement of (Known / Unknown) Adverse Third Party Rights Indemnity

Protection against the exercise of rights or easements over or under the property. Coverage can depend on whether development or continued use is proposed.

Flying/Creeping Freehold Indemnity

Protection against uncertain or inadequate arrangements for maintenance of a flying/creeping freehold element of the property. A flying freehold being where a part of a property extend physically in or over a neighbouring property and a creeping freehold where a property ‘creeps’ under a neighbouring property e.g. a cellar.

Good Leasehold Indemnity

Protection against a challenge to the Property’s title and unknown covenants.

Insolvency Act Indemnity

Protection for a mortgage or successor in title to the transfer in the event the transfer of the Property is set aside pursuant to the Insolvency Act.

Japanese Knotweed Indemnity

The concern of future discovery of Japanese Knotweed or Japanese Knotweed reoccurring, following works currently being undertaken, or simply the current owner discovering Japanese Knotweed during their day-to-day ownership, and arranging specialist treatment.

Lack of NHBC & Architect Certificate Indemnity

Where the property is constructed or converted without a valid National House Building Council (NHBC) or Architects Completion Certificate.

Mining / Mineral Rights Indemnity

Protection against financial loss as a result of the future exercise of rights to extract mineral reserves underneath the property.

Possessory Title (Residential) Indemnity

A possessory title refers to the ownership of land to someone who does not hold the necessary evidence of proof. Therefore, this indemnity provides cover against any financial losses suffered if someone attempts to claim ownership.

Right of Light Indemnity

Right of Light protects against the cost and expenses associated with Rights of Light claims where a neighbouring property can make a claim associated with loss of light.

Search Indemnity

Protection against financial loss caused by a matter that would have been revealed to the owner of a property by a search in the form of local authority, mining, drainage, village green.

Trustee (Breach of Trust) Indemnity

The policy will indemnify the trustees and their successors in title, agents and professional representatives in respect of all loss, damages, costs and expenses sustained, suffered or incurred which are directly attributable to the distribution or winding up of the trust.

Warranty and Indemnity

Risks arising from breaches of warranties and indemnities in the Share Purchase Agreement relating to corporate property transactions. Cover can be for both the buyer and seller and can be taken out pre or post-sale.

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