• What Will Indemnity Insurance Cover For A Possessory Title?

    By Guest on 01st Nov 2016

    Hello,
    I am in the process of purchasing a property.

    It transpires that the Vendors solicitor (or the Probate Solicitor) has lost the title deeds so the Vendor needs to re-establish the title.
    I am aware that they will get a Possessory Title before they get an Absolute Title.

    We are purchasing the property for £330k and we need to do a lot of work to refurbish the property – probably costing £80-90k. The finished value of the property should be somewhere around £490k.

    If we take out indemnity insurance, does it only cover the £330k purchase cost, or does it cover the £330k and the £80-90k of refurbishment costs?

    Kind regards,
    Andrew

  • 1 Answers

    By Guest on 03/11/2016

    The maximum you could claim under the policy would be £330,000 (except that some policies contain an escalator clause which means the limit of cover increases by a certain percentage each year) but in any event this is not a buildings insurance policy, it is a policy that covers you against loss suffered as a result of third parties exercising rights or enforcing covenants that you don't know about because the deeds are lost

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