Local Authority Search Indemnity Insurance is used during a conveyancing transaction in England and Wales when you are remortgaging and do not want to pay for another full Local Authority Search. The principle behind it is that, as the current owner, you will most likely have purchased a local search when you originally bought the property. Therefore, when you come to remortgage, you do not want to pay for a second one.
This is why, in most remortgage transactions, you can obtain Indemnity Insurance instead. There are, however, some mortgage lenders who will not accept this. We will explore this in the article below, alongside exactly what the insurance protects against and who it covers. Plus, in our FAQs, find out the one accidental mistake that can completely invalidate your policy.
A Local Authority Search is a standard property conveyancing search that examines the land your prospective home is built on. It reveals critical, council-held information that the seller cannot reliably provide.
It includes planning permissions, building control works, local land charges, and highway maintenance records. This is critical information because if the property is in breach of building control laws or has enforcements, they will adversely affect the property's value. This is why mortgage lenders require this information when you purchase the property.
Why is a remortgage different?
A remortgage is different because the owner will already have the Local Authority Search from when they purchased the property, even though it will be out of date. For a remortgage, the majority of mortgage lenders will allow you to obtain Indemnity Insurance instead of buying another Local Authority Search.
What does the insurance cover?
Local Authority Search Indemnity Insurance protects both you as the property owner and your mortgage lender if an adverse council matter, such as an enforcement notice, planning breach, or local land charge, comes to light after completion.
If a previously unknown restriction or order leads to a reduction in the property's market value, or results in legal costs and court orders, the policy compensates for the financial loss up to the policy limit. Specifically, coverage typically includes:
Reduction in market value: If an undisclosed council order, restriction, or notice reduces the market value of the property, the policy covers the resulting financial loss.
Enforcement and legal costs: It covers damages, compensation, legal costs, and expenses arising from any court order or council enforcement action tied to matters that would have appeared on the search.
Planning and building control breaches: This includes unapproved extensions, conversions, or works carried out without proper planning permission or building regulations sign-off.
Local land charges and restrictions: It covers unexpected financial liabilities, tree preservation orders, or restrictions tied to the land that the council enforces.
Highway and road schemes: It protects against undisclosed road maintenance liabilities or nearby council schemes that affect access or property value.
Example
For example: Jane bought a house and, to avoid severe delays with the local council returning their searches, her conveyancing solicitor advised taking out Local Authority Search Indemnity Insurance so she could complete on time and not lose her mortgage offer.
A year later, the local council served an enforcement notice because the previous owners had built a rear extension without the correct building regulations approval. The council demanded the extension be removed, which permanently reduced the market value of Jane's property by £25,000 and incurred £4,000 in legal and remedial fees.
Because Jane had the Indemnity Insurance policy in place, she was protected. The insurance provider covered her legal expenses in dealing with the council and compensated her for the £25,000 reduction in her property's market value.
Expert Tip: How often is this insurance actually used?
Clients often ask if buying this insurance is just throwing money away, considering how rarely claims are actually made. It is true that claims on search indemnity policies are exceptionally low. This is largely because local authorities are generally reactive; they rarely have the resources to actively hunt down decades-old building control breaches unless a neighbour makes a specific complaint.
However, you are not buying this policy because you expect the council to knock on your door tomorrow. You are buying it to satisfy your mortgage lender's strict zero-risk requirements. It is a highly effective procedural tool that helps get your mortgage approved and keeps your property transaction moving without causing severe delays.
What is the Local Authority Search Indemnity Insurance Cost?
The cost of indemnity insurance depends on the property's value; the higher the value, the higher the risk and the higher the cost. At press time, we found a quote of £130 for a No Search policy covering a single private dwelling with a £1,000,000 indemnity limit. For the same company, we lowered the indemnity limit to £500,000 and were quoted £85.
How does this compare to the cost of a Local Authority Search?
The cost of a local authority search is commonly more than the cost of indemnity insurance. You can compare the above cost against the cost for an Official Local Authority Search for your council below:
Check your lender
Do all mortgage lenders accept Local Authority Search Indemnity Insurance?
No, they don't; however, the majority of high street mortgage lenders do. If your mortgage lender doesn't accept insurance, you have no option but to obtain a Local Authority Search. We can help with this if you need. Use our mortgage lender checker to see if your lender accepts insurance, and if they don't, then order your search through us today.
Does your lender accept indemnity insurance?
Buy a Local Authority Search
Professionally insured Regulated Local Authority Search.
Available for any local authority in England & Wales.
Ordered today, delivered in line with local authority timeframes.
What are the different types of Local Authority Search Indemnity Insurance?
There are different types of insurance policies available depending on your exact circumstances and whether you are buying or refinancing. The most common policies include:
No Search Purchase: Designed for property purchases where a local authority search has not been obtained at all. While highly unusual for mortgage buyers, it is sometimes used by cash buyers who are willing to take on the risk. It protects the purchaser (and their lender, if applicable) against unknown council-related risks that a full search would have revealed.
No Search Remortgage: This is the most commonly used policy. When you are remortgaging your current property, your new lender will often accept this insurance instead of requiring a completely new search, since you already had one completed when you originally bought the home.
Search Delay: This is used during a purchase when a local council is experiencing severe delays in returning the official search results. If you need to exchange contracts quickly to prevent a property chain from collapsing or your mortgage offer from expiring, this policy protects you and your lender against any adverse entries that may eventually appear on the delayed search. Your conveyancing solicitor will obtain the lender's consent to use this insurance before they can exchange.
Expert Tip: You cannot take out the insurance yourself
Indemnity policies are a specialist insurance product and can only be arranged by an FCA (Financial Conduct Authority) regulated firm or a regulated conveyancing solicitor. Because it is a regulated financial product, the professional arranging the cover is legally required to explain the terms of the policy and ensure it is entirely suitable for your specific circumstances.
For this reason, you cannot purchase this type of conveyancing indemnity insurance directly from an insurance provider as a member of the public.
If you are buying a property with a mortgage, the vast majority of lenders will not allow you to rely solely on Local Authority Search Indemnity Insurance in place of a full search. Lenders expect your conveyancing solicitor to conduct a thorough, evidence-based investigation of the property.
"In carrying out your investigation, you must ensure that all usual and necessary searches and enquiries have been carried out. You must report any adverse entry to us, but we do not want to be sent the search itself."
Source: UK Finance Mortgage Lenders' Handbook (Section 5.4.1)
Because the UK Finance guidelines explicitly mandate that all "usual and necessary searches" are carried out, lenders will expect to see the actual results of a Local Authority Search before releasing the mortgage funds. Therefore, a "No Search" indemnity policy for a purchase is usually only available to cash buyers.
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.
