When buying or selling a property, the topic of building regulations can be a source of stress. Missing approvals or non-compliance with regulations might leave buyers wondering about their financial risks and sellers scrambling for solutions. This is where indemnity insurance for building regulations becomes crucial. In this guide, we’ll explore what these policies cover, when you might need them, and how they can provide peace of mind during property transactions.
Indemnity insurance for building regulations protects property owners against costs arising from missing or incomplete building regulation approval. It covers situations where a local authority enforces compliance or demands changes to non-compliant work.
Missing building regulation approval can lead to complications when selling a property. An indemnity policy for lack of building regulations is a practical solution, particularly in cases where resolving the issue through compliance is time-consuming or costly.
Deciding whether to invest in indemnity insurance depends on several factors. Here’s what to consider:
It’s important to note that indemnity insurance does not cover the cost of bringing work up to standard or compliance inspections. The policy only protects against enforcement action.
The cost of indemnity insurance varies depending on the value of the property and the level of risk involved. On average, policies range from £50 to £500. While this is a small cost compared to potential legal expenses, it’s essential to shop around and consult with a solicitor to find the best deal.
An indemnity policy is particularly useful when:
Securing an indemnity policy is straightforward:
An indemnity policy for lack of building regulations provides financial protection if enforcement action is taken due to non-compliance with building regulations. It does not cover remedial work but ensures buyers or sellers are not liable for legal costs or fines.
Generally, indemnity policies are arranged during the property sale process. However, they can be taken out post-sale if new issues arise, though this might involve additional negotiations between parties.
Indemnity insurance for building regulations is a practical solution for addressing missing approvals or non-compliant work. Whether you’re buying or selling, this policy can simplify transactions, provide peace of mind, and protect against unexpected costs. Always consult with a solicitor to ensure the policy meets your specific needs.
Take the next step: Contact a trusted insurance provider or your solicitor today to explore your options for building regulation indemnity policies.
