In brief, an Indemnity Policy is a specific type of insurance policy that claims to cover for costs that might be incurred as a result of missing documents that are required during a property transaction.

Are they of any value though..?

The answer to this question is both yes and no.

Yes, the policy has a value of some kind if it allows a property to be bought/sold.   If it is a case of being able to buy/sell it with the policy, or unable to without the policy then that is itself a value.

No, the policy is unlikely to have any value at all should you need to make a claim on it.   The exclusions and clauses that would void the policy are so well written, for the protection of the insurance company, that it is highly unlikely that anyone would be able to make a successful claim and receive a pay-out.   For example, simply knowing about the presence of an unauthorised alteration to a Listed Building could be sufficient to void the policy.  Having had any contact at all with the local authority can void the policy.  There are other typical  actions that a reasonable person might do which will void the policy.

The clue is in the premium paid for the Indemnity Policy.   They are not expensive.  This is because the insurers are confident that they won’t need to pay out on any claims.

Disclaimer:   Anything posted in this Blog is for general information only and it is not in any way intended to provide any advice, legal or otherwise, on any general or specific matter that you can rely on.  You should always seek your own legal advice.