Local Authority Search Indemnity Insurance
What is local search indemnity insurance?
- Remortgaging and you don't want to have to get a new local search as you purchased one when you bought the property; or
- Purchasing and your local search isn't going to be returned in time for your desired completion date.

What is covered with no search indemnity insurance?
- disposal for value of all or part of Your interest in the title to the Property following an Order which causes You to realise a reduction in Market Value; or
- actual dispossession from all or part of Your Property following an Order which causes You to realise a reduction in Market Value; or
- such other event following an Order which causes You to realise a reduction in Market Value.
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What is Local Authority Search Indemnity Insurance?
- Search Insurance (Residential) - No Search Purchase - Purchaser Borrower and Lender
- Search Insurance (Residential) - No Search Remortgage - Purchaser Borrower and Lender
- Search Insurance (Residential) - Search Delay - Purchaser Borrower and Lender
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What is a Local Authority Search?
- Planning permission
- Building Control Works including extensions/conversions, Part P - electrical works, subsidence (under pinning), boiler installation and double glazing installation.
- Local land charges (costs that you are liable for) such as Section 106 and Smoke Control Order
- Public Rights of Way
- Highways information including who is responsible for maintaining your road
- Risks of radon
- It can also show whether that council has permitted any major development to be built in the vicinity of your property which might seriously affect your enjoyment of it
Do you only get searches if you're a mortgage buyer?
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When can you use Local Authority Indemnity Insurance?
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Local Authority Search Indemnity Insurance vs. Local Authority Search - Pros and Cons
Local Authority Search - Pros and Cons
- Varies on property and locality
- Gives wide-ranging information on property and associated risks
- Can help in you in making a decision about whether or not to go ahead with the purchase
- Gives your solicitor a powerful piece of information when it comes to generating enquiries and finally writing you a comprehensive report on title
- Can take days or several weeks to be returned: this might derail your conveyancing
- Normally costs considerably more than insurance - particularly if you have to book an official local authority search (can be in the £100s)
- Does not provide insurance
Search Insurance
- Can be very quickly set up and is in place once payment has been made
- Prices vary either according to the price of the property or to the level of indemnity required normally
- Insured against many events
- Insurance doesn't guarantee complete protection
- You don't receive detailed information about potential threats - these might seriously lower your enjoyment of your property
- When it comes to selling, if your buyer purchases the Local Authority Search, this might uncover detrimental information regarding the sale and you would be unprepared for this
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How much does Local Authority Search Indemnity Insurance cost?
You can't take out the insurance yourself
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Why you shouldn't use no search indemnity on your purchase?
- Load bearing wall - if the seller has removed a load bearing wall the property could be structurally unstable unless adequate strengthening was installed such as an RSJ.
The council will hold records if the works have been signed off to building control standard. If works haven't been signed off at building control it will effect any future resale value and could lead to cracks or, in the worst case scenario, the property to collapse.
After all, what can you expect when removing a load bearing wall without any strengthening? - Extensions/Conversions - if the seller has extended the property but not used compliant building methods or materials then future buyers will look to negotiate on the sale price and, if getting a mortgage, the lender will want an indemnity.
What isn't considered but is a material issue is that the Building Regulations are there to protect home owners. Faulty installation of electrical sockets in an extension can cause a fire and the chance of injury or death to anyone in the property. - Boiler - if the seller has installed a boiler themselves and not used a Gas Safety trained engineer then you run the risk of injury or death and future challenges having to pay to get the installation work signed off to current Building Control Standards by a Gas Safety engineer.
There are indemnities to protect against the effect of the property value by having no building control sign off, there is no insurance to cover the cost of injury or death.
This is why an indemnity is used for a remortgage where you obtain the local authority search when you bought the property because you are already aware of what works have been signed off by building control and logged at the council.
Looking for a Local Authority Search for a Commercial property? Check out our dedicated article.

Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.

Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.