A title indemnity policy (also called indemnity insurance) is a one-off insurance policy taken out on a property to protect against specific known legal risks in the title. Your solicitor may recommend one when they discover a defect in the title that can't easily be resolved but isn't likely to cause practical problems.
When solicitors recommend title indemnity
The most common triggers:
Missing building regulations completion certificate: An extension or conversion was carried out but the building regulations completion certificate was never issued. The work was done years ago and no enforcement has been taken. An indemnity policy protects against future enforcement or claims.
Missing planning permission: Works were done to the property without planning consent, outside the permitted development rules. If more than 4 years have passed (or 10 years for change of use), enforcement action is time-barred. An indemnity covers the residual risk.
Missing FENSA certificate: Replacement windows were installed by a non-FENSA registered installer and no completion certificate was obtained. An indemnity policy confirms compliance with building regulations for the replacement glazing.
Restrictive covenant concern: The property is subject to a restrictive covenant (e.g. no commercial use, no additional buildings) and there's a question over whether a past or intended use might breach it. An indemnity protects against a third party claiming the benefit of the covenant and seeking enforcement.
Chancel repair liability: Some properties are subject to an ancient liability for church repair. An indemnity policy (usually £15–£30) provides complete protection.
Adverse possession: The property boundary includes land acquired by adverse possession without formal title. An indemnity protects against a claim by the paper owner.
What the policy actually covers
Title indemnity policies cover the financial consequences of the specific risk materialising. If a local authority issues an enforcement notice requiring demolition of an unauthorised extension, the policy would cover the cost of compliance and any related losses. If a claim is never made, the policy simply lapses.
Key policy terms to check:
- What specific risk is covered? (Make sure the policy description matches the actual issue)
- What is the indemnified amount? (Should be at least the purchase price, preferably also mortgage amount)
- Are lenders covered? (Should cover both you and any mortgage lender)
- What triggers a claim? (Formal enforcement action vs any challenge)
Should you accept the recommended policy?
In most cases, yes. Title indemnity policies are standard, cheap, and accepted practice in UK conveyancing. The underlying issues they cover — missing certificates, minor planning questions, chancel liability — are very unlikely to cause problems in practice, and the policy provides peace of mind for a modest cost.
The exception: if the indemnity is being recommended to paper over a significant ongoing issue (active enforcement proceedings, serious planning breach with enforcement risk), that's different. Ask your solicitor whether the underlying problem can be properly resolved first.
This Q&A is for general information. Dom does not provide legal advice. Consult your solicitor for advice specific to your transaction.