Why do i need indemnity insurance when selling a house ?

Question

Why do i need indemnity insurance when selling a house ?

Answer 1

Basically because if you sell a house which then causes the new owner a problem, he/she could sue you.

For example, if the new owner were injured by falling through rotten floorboards or if a damaged chimney fell on him or if a wall collapsed on him or if he were 'blown up' through faulty wiring ... Need I go on? You would be liable. Hopefully, surveyors' reports should takes care of such things - but you never know.

It would be of no use saying that you did not know about a particular fault. In the worst case, if a person were killed, you could well be sued for astronomical amounts - and much more than the value of the house!

Actually, even whilst you are still the owner, you have a duty of care. If a visitor were hurt by something wrong with the house or garden, you could well be in the same position, so that indemnity insurance is always worthwhile.