How does indemnity insurance protect the buyer in a house purchase?

[Thatone5]

Say the seller doesn’t have a boiler installation certificate so my solicitor has asked them to provide indemnity insurance in place of this, how does it benefit me as the buyer? What would be grounds for claiming on this indemnity insurance?

Indemnity insurance pays out money if a specified event occurs up to a specified limit. It cannot fix the problem. Realistically it is often the most practical thing to do on a house purchase.

Exactly when you can claim depends on the terms of the policy so read it carefully and ask your solicitor to negotiate if necessary.

We had this.

For us, it means that while everyone is happy the boiler was installed legally and safely etc, if the council/some authority were to come around, and declare the lack of the document means the boiler should be removed or otherwise, the indemnity policy means they would cover this and the costs incurred to make right.

It does not cover the boiler being faulty or anything as a result of its install, or provide any guarantees or anything. Just simply will pay out if there is an issue relating to the lack of the bit of paper that says it was approved.