Title Certificate (Excess of Indemnity Cap) Insurance
Cover above the indemnity cap
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​When your client is relying on a Certificate of Title, the indemnity cap can be the pinch-point.
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L&C's policy provides insurance in excess of that cap, enabling the transaction to proceed without reworking the title reporting position and satisfying the lender or investor.
The problem
The transaction value has increased, a portfolio has been aggregated, or the certificate is being used further down the line. The indemnity cap in the Certificate of Title suddenly looks thin.
Increasing the cap through PI is not always realistic. Top-ups can be slow or simply unavailable. In some cases, the certificate is being assigned and the original cap cannot be changed.
The solution
Title Certificate Insurance covers loss, damage, cost, claim or expense that would have been recoverable under the certificate, if the indemnity cap were not there.
It is designed for lenders and investors who are relying on the certificate and want comfort above the stated cap.
The policy is only activated once the cap is exhausted. Cover remains in place for as long as the law firm remains liable under the certificate.
How it fits with your title reporting
The policy sits back-to-back with the CLLS Certificate of Title and any wrapper documents. There is no attempt to re-write the reporting position or introduce alternative assumptions.
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In practice, this means:
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The certificate stays as it is
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The indemnity cap remains unchanged
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The insurance responds above the cap, as set out in the policy schedule
Recent COT scenarios
Reporting remains with existing firm
Where the value or risk profile of the transaction has moved beyond what is comfortable under PI limits, but the client wants to retain the same title reporting approach.
Assignments and onward sales
Where an existing Certificate of Title is being assigned to a sub-purchaser or lender at a higher value, and the original indemnity cap cannot be amended.
Portfolio transactions
Where multiple assets are aggregated and reliance on a historic cap no longer reflects the commercial exposure.
Speak to a senior underwriter
Contact us to learn more about removing pinch points when using Certificates of Titles. Our senior underwriters are specialists in providing solutions to complex and high-value risks affecting all sectors of the UK property market.
Learn more about our Title Certificate policy
Access our booklet to see a breakdown of our Title Certificate (Excess of Indemnity Cap) Insurance policy and learn why it offers greater protection against title risk.
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