Costs guide
How Much Does Indemnity Insurance Cost When Buying a House?
Updated 23 July 2026
Indemnity insurance on a UK house purchase typically costs £20 to £300 as a single one-off premium in 2026, depending on the defect covered and the property's value. Common examples: chancel repair around £20 to £60, lack of building regulations £50 to £150, restrictive covenant breach £100 to £300. The seller usually pays, the policy lasts forever, and it protects against the financial consequences of a paperwork defect, not the defect itself.
Common indemnity policies and typical one-off premiums (2026)
| Policy | Typical premium | Covers |
|---|---|---|
| Chancel repair liability | £20 to £60 | Historic church repair liability |
| Lack of building regulations | £50 to £150 | Old works without a completion certificate |
| Lack of planning permission | £100 to £300 | Enforcement risk on unauthorised works |
| Restrictive covenant breach | £100 to £300 | Past breach of a title covenant |
| Build-over (sewer) agreement | £50 to £150 | Extension over a public sewer, no agreement |
| Absence of easement / right of way | £100 to £400 | Access not formally documented |
What indemnity insurance actually does
An indemnity policy pays out if a specific legal defect in the property's paperwork ever costs you money, for example if the council enforced against an extension built without building regulations sign-off. It does not fix the defect, and it does not cover the physical condition of the work: if that unauthorised extension has a sagging roof, the policy is irrelevant.
Policies are one-off premiums, last indefinitely, and pass to future owners and lenders. They exist because they are usually far cheaper and faster than fixing the underlying paperwork, which is why solicitors reach for them so often in the final weeks of a purchase.
Who pays, and when to push back
Convention says the seller pays, since the defect is in their paperwork, and most do without argument given the sums involved. Where premiums climb, higher-value properties or unusual risks, it becomes a negotiation like any other cost.
Push back when insurance is being used to paper over something you actually care about. A policy for a missing FENSA certificate on one window is sensible pragmatism; a policy instead of investigating a major structural alteration is risk transfer you should not accept without understanding what was done.
Traps that invalidate policies
- Contacting the council about the unauthorised works: most lack-of-consent policies are void if the authority is alerted.
- Planned alterations: extending an area covered by a covenant policy can void it; tell the insurer first.
- Wrong insured value: the policy should match the full property value, and be uplifted on later remortgages if needed.
- Assuming condition is covered: indemnity insurance never warrants that the works were done properly.
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Frequently asked questions
How much is indemnity insurance when buying a house?
Most policies cost £20 to £300 as a one-off premium in 2026, scaling with property value and risk. Chancel policies sit at the bottom of that range, planning and covenant policies towards the top, and unusual risks on high-value properties can exceed it.
Who pays for indemnity insurance, buyer or seller?
Usually the seller, because the policy exists to cure a defect in their title or paperwork. It is convention rather than law, so it is occasionally split or picked up by a buyer keen to keep a transaction moving.
Is indemnity insurance worth it or a con?
It is genuinely useful for what it does: cheap, permanent protection against low-probability legal costs, and lenders accept it. The criticism is fair only when it is used to avoid investigating something that matters, since it never covers the quality of the underlying work.
Does indemnity insurance transfer to the new owner?
Yes. Policies are written to benefit successors in title and lenders, so an existing policy from a previous sale may already cover the defect; your solicitor should check before buying a duplicate.
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