The short answer
When a property is being sold and it emerges that previous building work — an extension, loft or excavation — was carried out without serving party wall notices, a conveyancer may suggest “party wall indemnity insurance” so the sale can proceed. It is important to understand what it does and does not do: it does not regularise the work or remove any neighbour’s rights; it only offers the policyholder limited financial cover against certain claims. It is not a substitute for having done the process properly.
Why it matters
The Party Wall Act has no retrospective mechanism — you cannot serve a notice for work that is already finished. So if notices were missed, the position cannot be put right under the Act afterwards, and indemnity insurance becomes the conveyancing workaround: a one-off policy that may cover a buyer or lender against certain losses if a neighbour later brings a claim. Its limits matter, though. It does not stop a neighbour pursuing their rights; the cover is narrow and conditional (often void if you approach the neighbour about it); it does not pay for doing the work correctly; and it does nothing for future works. The real lesson is for anyone planning work: serve notices at the right time. Talking to the neighbour then, and using a single agreed surveyor, keeps it simple and cheap — and avoids this ever becoming a sale problem.
What to do now
- If you are selling and the issue arises, take conveyancing advice on whether indemnity is appropriate.
- Do not contact the neighbour about it without that advice — it can void the policy.
- If you are planning works now, serve notices properly so the issue never arises — speak to your neighbour first, and where a surveyor is needed, a single agreed surveyor (the route Coburns recommends) keeps it straightforward.
Common mistakes
- Believing indemnity insurance “sorts out” the missing award — it does not.
- Approaching the neighbour after taking out a policy, which can void it.
- Relying on it to cover future works.
- Skipping notices in the first place.
When to call Coburns
We help building owners serve notices correctly so this never becomes a problem at sale. For completed work, we can talk you through the position. (This is general information, not legal or conveyancing advice.)