The situation with indemnity insurance is like this:(posted 9137 days ago)The insurance policy is purchased by the lender to protect them against selling the property at a loss if it is repossessed. They took out the insurance because they were lending you 75% or more of the original value of your house. The contract is between the lender and the insurance company - the lender just passed the cost onto you. This is the reasoning behind the case you mentionned (Woolwich Building Society v Brown).
I have not known of any successful challenges to this reasoning.
Sue Edwards