What is chancel repair indemnity insurance? A guide for solicitors

Chancel repair liability is a centuries-old obligation that still affects property titles in England and Wales. Though largely dormant, it can impose significant cost exposure on property owners. As a conveyancing or property solicitor, advising clients on whether there is potential chancel repair liability (and whether indemnity cover is needed) is a key part of risk mitigation.

In this article, we explain what chancel repair is, how liability arises, how changes in law have altered exposure, and why chancel indemnity insurance remains an important tool.

Key takeaways:

• Chancel liability insurance provides protection where properties may still be subject to historic repair obligations, ensuring clients are not exposed to unexpected financial demands.
• A legal obligation to contribute to church repairs can arise under the Chancel Repairs Act 1932 and, despite reforms, may still affect existing owners until title is transferred.
• The local church or its parochial church council has the right to enforce liability, which means solicitors should carry out searches and recommend indemnity cover where appropriate.

What is chancel repair liability?

The term “chancel” refers to the area around the altar in a church (often the eastern end) and historically was the rectors’ responsibility to maintain. Over time, when church lands (glebe or rectorial lands) were sold or transferred, liability for the chancel repairs sometimes passed to private landowners. Thus, certain properties may carry a legal obligation to contribute to (or pay for) repair works to the chancel of their medieval parish church.

Liability is enforceable under the Chancel Repairs Act 1932, which converted ecclesiastical claims into civil debt obligations. In 2003, the House of Lords confirmed that such liability can still be enforced – in Aston Cantlow v Wallbank, the landowners were ordered to pay repairs plus substantial legal costs.

However, legal reform in 2013 introduced a cut-off: churches had to register a notice before 13 October 2013 at the Land Registry to preserve enforceability against new owners. This was brought in under the Land Registration Act 2002. If churches failed to register, new purchasers may be shielded, though existing owners may remain exposed until title passes for valuable consideration.

Because many parochial church councils either did not register or chose not to enforce, liability may appear in unexpectedly scattered locations. And even when a church has registered, the precise geographic boundaries and historical title connections can complicate the picture.

Why such indemnity insurance is necessary

From a solicitor’s perspective, advising a client to take out chancel repair liability insurance or chancel repair insurance is a prudent measure of title protection. Here are the key reasons:

• Uncertainty of registration: Title searches may not always reveal a church’s interest, especially if notification is absent or the register is incomplete.
• Potential scale of claims: A chancel repair claim can be substantial, particularly if multiple structural elements (roof, windows, masonry) are implicated. The Wallbank case showed how liability plus legal costs can reach six figures.
• Valuation and marketability: Properties subject to liability may be harder to sell or undervalued if liability is known or suspected.
• Law practice risk: Failing to alert or protect a client may open the door to negligence claims against the solicitor.

Given these exposures, indemnity cover is a valuable layer of protection, typically arranged for a one off payment at the time of purchase.

What does chancel repair indemnity insurance cover?

Policies vary in structure, but typical cover features include:

• Indemnity against repair demands made by the church or parochial church council for future chancel repair costs.
• Cover for legal costs and professional fees incurred in defending or negotiating a claim.
• Protection for successors in title (i.e. new owners of the property) – many policies run in perpetuity.
• Extensions that may allow for inflation adjustment or escalation in future repair costs.
• Insurers offer “no search” cover (where no chancel repair liability search has been done).

Practical steps for solicitors

As part of due diligence, solicitors should:

1. Carry out a chancel repair search or “check” early in the conveyancing process.
2. Inspect the title register for entries or notices regarding chancel repair liability.
3. Advise clients of exposure where liability exists or is suggested by parish/glebe history.
4. Recommend or arrange indemnity insurance through specialist providers.
5. Ensure the insurance wording extends to successors in title.
6. Monitor registration time windows
7. Review policy documentation carefully.

By doing so, solicitors can ensure their clients are not left exposed to an unexpected demand from a parish council seeking to force property owners to pay for church repairs.

Conclusion

Chancel repair liability may sound archaic, but it continues to represent a real risk in conveyancing. For solicitors, the duty is to assess, disclose, and mitigate that risk. Chancel repair indemnity insurance provides a straightforward way of transferring liability, protecting both clients and their advisers.

For more information, visit our Chancel Repair product page.