Chancel Repair Liability Insurance Explained
Chancel indemnity insurance is purchased during the conveyancing process by the buyer and protects them from any future claims to repair the local church. Chancel repair liability is a legal obligation on some property owners in England and Wales to pay for certain repairs to the local parish church.
We discuss chancel checks and searches in further detail in our dedicated article: Chancel Search. This article focuses specifically on chancel indemnity insurance.
The historic right to impose these charges goes back many hundreds of years but came to national prominence when a church won the right in the High Court in 2003 to impose a massive charge on a landowner. This liability is not automatically recorded on the property's title deeds at the Land Registry, meaning the buyer and their solicitor might not be aware of it until a claim is made.
- Ancient Law: Chancel repair liability is a medieval legal obligation tied to the land, meaning certain property owners can be legally forced to fund local church repairs.
- The 2013 Cut-off: Since October 2013, churches must register this liability with HM Land Registry. If a property is sold for money ("valuable consideration") after this date without a registered notice, the liability is typically lost.
- Low Cost, High Protection: Chancel indemnity insurance provides up to £500,000 in financial and legal protection for a single, low-cost premium (usually between £20 and £50).
- Skip Expensive Searches: Purchasing a 'no-search' insurance policy is often cheaper and safer than paying for historical searches, which can significantly increase your insurance premium if a risk is uncovered.
Types of Chancel Indemnity Insurance
There are two primary types of Chancel Indemnity Insurance:
- 1
No Search Chancel Indemnity Insurance: Taken out when the buyer is unaware if there is a chancel liability (because no search was conducted). This policy is void if the insurer can prove that the buyer was already aware of a chancel liability.
- 2
Chancel Repair (Known Liability) Insurance: Taken out when a chancel search has been conducted and confirms the buyer is liable. The premium for this insurance is significantly higher than a 'No Search' policy and can only be taken out if there has been no:
- Attempt to cancel the chancel repair liability affecting the property, and/or
- Demands received or made, and no enquiries exchanged with the church authorities relating to the chancel repair liability.
Do you need a Chancel Search?
Order a chancel search report and put your mind at ease.
- Check for the risk of being liable to your local church.
- Report delivered within 2 working hours.
- Fixed fee of £42 INC VAT.
Why buy insurance without doing a search?
Chancel indemnity is not a search or a check; it is an insurance policy that protects against a financial claim from the local church and pays for the repair costs if a liability is enforced. When buying a property, it is often more cost-effective to take out chancel indemnity insurance without first completing a chancel search. Here is why:
- Option A (Search First): Pay to search the chancel records (costing between £20 to £40). If a risk is found, you must then pay for Known Liability Chancel Indemnity Insurance, which costs £40 upwards.
- Option B (Insure Immediately): Pay for a No Search Chancel Indemnity Insurance policy for around £20 without getting the initial search. The indemnity insurance will pay out (subject to policy terms being met) for any future claim for repairs from the local church.
PCC of the Parish of Aston Cantlow and Wilmcote with Billesley v. Wallbank
The Wallbank case in 2003 brought the chancel repair liability issue to prominence. Andrew and Gail Wallbank received a demand for almost £100,000 to fund repairs of their ecclesiastical parish's medieval church at Aston Cantlow.
After a protracted legal battle as they sought to challenge this ruling, the Law Lords found in favour of the Parochial Church Council, leaving the Wallbanks with a £350,000 bill including legal costs. You can read more about the case here: Read the full House of Lords judgment.
Why do I need Chancel Repair Liability Insurance?
Chancel liability is an unknown risk that does not typically appear on the title deeds to your property. Whilst there have not been a large number of recent cases where the church seeks to enforce repair obligations on landowners, the financial impact if it does is considerable. When weighed against the low premium of insurance, buyers and mortgage lenders universally view this protection as the safer option.
Why don't I just get a Chancel Repair Liability Search?
Getting a No Search chancel repair liability insurance policy saves you from potentially paying twice. If you buy a chancel search, you may be lucky and find that the property has no liability. However, the cost of the search is often similar to, if not more than, the 'No Search' indemnity insurance. If the search reveals the property is at risk, you then have to buy the more expensive 'Known Liability' insurance, meaning you pay significantly more overall.
What is covered within the indemnity insurance?
The terms of each policy differ, so you must inspect your specific indemnity policy. However, here is a standard example of what is covered:
In the event of a Parochial Church Council or the Representative Body of the Church of Wales claiming to be entitled to and demanding payment towards the cost of repair to a church chancel directly arising from the Defect ("Claim"), the Insurer will indemnify the Insured against:
- Any payment (including costs and expenses) awarded against the Insured in any proceedings brought against the Insured or agreed in any voluntary settlement or compromise of a Claim with the prior written consent of the Insurer.
- All other costs and expenses incurred by the Insured with the prior written consent of the Insurer, including the costs of the Insurer in defending or settling the Claim on the Insured's behalf.
Is chancel repair insurance a one-off payment?
Yes. The buyer pays for the chancel repair insurance once, usually just before completion of the property purchase. It is a single, one-off premium that covers the named buyers in the policy for the entire duration of their ownership of the property. It does not need to be renewed each year.
Do you need to get Chancel Repair Liability Insurance?
You cannot get chancel indemnity insurance yourself. The solicitor handling your transaction will get this for you. Our experienced conveyancing solicitors can guide you through the process of buying a chancel liable property.
Frequently Asked Questions
Andrew Boast FMAAT is a qualified accountant, conveyancing specialist and author with over 25 years of experience in the UK property sector. Since beginning his career in 2000 within established SRA and CLC-regulated conveyancing solicitor firms, Andrew has overseen the legal journeys of more than 75,000 clients.
He is the self-published author of the first-time buyer guide: How to Buy a House Without Killing Anyone, and a frequent contributor to mainstream UK media on legislative updates, property law, first-time buyer guides, conveyancing best practices, and stamp duty changes. Andrew specialises in resolving complex title issues, property conflict disputes, and property tax options, streamlining the enquiry process to reduce transaction times and maintaining a client-friendly focus.
Amanda Ambler is a highly accomplished conveyancing specialist with over 15 years of dedicated experience across residential property law, legal compliance, and practice management. Having held senior roles, including Head of Legal Practice and Head of Conveyancing at established UK law firms, Amanda possesses a profound, hands-on understanding of the technical intricacies of the property market.
As the designated Legal Content Reviewer for SAM Conveyancing, Amanda ensures that every guide, legal update, and resource published meets the absolute highest standards of accuracy, regulatory compliance, and factual integrity. Her rigorous review process guarantees that complex property legislation and industry processes are communicated clearly, transparently, and safely for home buyers and sellers alike.
