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Insolvency Indemnity Insurance


A claim can sometimes be made under the Insolvency Act where the ownership of a property has been transferred for less than the market value. For a variety of reasons, the ownership of a property may be transferred for less than market value. In those circumstances, should the party who transferred the ownership becomes insolvent within a period (in normal circumstances, four years) the transaction can be challenged by the creditors of the insolvent party.

In What Circumstances is cover Required?

Where a Property has been the subject of a Deed of Gift or Transfer at Undervalue and may be subject to the provisions of the Insolvency Act 1986 resulting in the transaction being set aside.

Note. Cover is not usually available to the parties to the original transfer but to subsequent purchasers and mortgagees.

Product features:

Risks covered: Losses including loss of market value, sums paid under an order to protect the Insured’s interest in the Property, losses sustained under a mortgage advance, other agreed costs and expenses.

Information needed:

  • Property address
  • Property value (or developed value in the event that development is to take place)
  • Use of the Property (both current and intended (if a change of use or development is intended)
  • Full details of the transfer at undervalue including the parties, the reason for the transfer and the extent of the undervalue
  • Details of the financial status of the transferor (including, if a corporate entity, full report and accounts)


For further information about Insolvency Act/Deed of Gift indemnity insurance or to get a quote, call our team on 0345 557 0845  or 01293 880700 or email us at