Japanese knotweed indemnity insurance is a one-off policy sometimes used in a sale to cover a defined financial loss, but it does not treat the plant and does not remove it. It is easy to confuse with a treatment guarantee, yet the two do very different jobs. Our guide to how knotweed affects a mortgage explains what lenders actually want, and this page sets out what indemnity cover can and cannot do so you do not rely on the wrong product.
What is Japanese knotweed indemnity insurance?
Japanese knotweed indemnity insurance is a single-premium legal indemnity policy, usually taken out during a sale, that pays a defined sum if a specified knotweed-related loss materialises, for example a future claim or an enforcement cost. It is a legal-risk product bought once, not an ongoing service. Crucially it does not pay for treatment or removal and does not deal with the stand itself, which is why it is not a substitute for a professional treatment plan where a stand actually exists.
How is it different from a treatment guarantee?
An indemnity policy covers a defined financial loss, whereas an insurance-backed guarantee funds the physical re-treatment of the knotweed if it returns after a professional programme. The guarantee deals with the plant; the indemnity deals with a narrow money risk. A guarantee follows an actual treatment and is issued by an audited Property Care Association member, typically for 10 years, and it is the document lenders look for. Confusing the two is a common and costly mistake, because an indemnity policy over a live stand leaves the plant untreated.
When does a lender still want a treatment plan?
A lender still wants a treatment plan wherever there is an actual stand on or near the property, because an indemnity policy does not manage the plant and the lender's real concern is future cost and spread. Indemnity insurance may have a place where knotweed is historic or a technical risk rather than a present infestation, but for a live stand the lender expects a survey, a plan and a guarantee. So an indemnity policy is at most part of a package, never a replacement for dealing with a stand that is really there.
Should you rely on indemnity insurance?
You should not rely on indemnity insurance to deal with a knotweed problem, because it does not treat or remove the plant, and a stand left untreated continues to grow and can still affect the property and any onward sale. Where a stand exists, the sound course is a professional treatment plan and guarantee, with indemnity cover only ever a supplement for a defined legal risk. Our mortgages page sets out the plan-and-guarantee package that actually satisfies a lender.
Common questions
- Does indemnity insurance treat the knotweed?
- No. Indemnity insurance covers a defined financial loss but does not treat, remove or manage the plant. For an actual stand you need a treatment plan and an insurance-backed guarantee, which is what a lender wants.
- Will a lender accept indemnity insurance instead of treatment?
- Not usually where there is a live stand, because the lender is concerned with future cost and spread. Indemnity cover may supplement a plan for a historic or technical risk, but rarely replaces treatment.
- Who pays for indemnity insurance in a sale?
- It is often the seller who arranges and pays for an indemnity policy as part of a sale, though this is a matter for negotiation. Either way, it does not remove the need to deal with an actual stand.