Indemnity insurance ?

supa_nan · 15 August 2008 at 6:32PM

I thought i posted this note earlier,but seemingly not. Im new to this site and hoped someone out there might have some advice. Here are the facts, we got permission to build a conservatory from our housing dept in 1997, this was erected with clear plastic roof. We then bought this house under right to buy in 1999 and replaced the plastic roof with a hard roof. It falls below building regs less than 50 cubic whatever it is. Now we have come to sell our property we was asked to get approval/regularisation from the council. When i went to council offices, the person behind the counter said my best course of action is to not apply for this, as the building would not pass now. It was built with footings, damp course, correct floor joists, roof insulation, lentils etc.. And if i brought it to the ttention of the council this would affect me getting indemnity insurance. My buyer is now relectantly not happy to proceed on the advice of his solicitor. I totally understand he needs to be assured that the building is safe. We never removed the wall at the back of our house, nor the back door. We have arranged for an independant surveyor to come and do a report on the conservatory and hope our buyer will accept this together with an indemnity policy. I would be grateful of any advice and comments. Thanks

supa_nan · 16 August 2008 at 9:24AM

Bumping up this thread to see if anyone has any words of advise. thanks

Ishtar · 17 August 2008 at 9:43AM

We bought our last house with an indemnity on it as previously an extension had been added without building regs/planning consent sometime between 1995 and 1999. Anyhow, it didn't put us off - nor did it put off the people who subsequently bought our house earlier this year. We had to top up the policy when we sold as the house value had increased since we purchased it - this cost the princely sum of £25!

No-one had any problems with it - according to our solicitor the amount we paid to increase the indemnity covered the property for a complete rebuild, so even if the extension fell down, bringing the house with it (unlikely, but you never know!) then it was covered.

Perhaps your buyer/their solicitor is being overly cautious given the current housing market. Personally, I can't see the problem....Hopefully, the independent surveyors report will reassure them and you can proceed without any problem.

HTH
D.

Rebchappers · 17 August 2008 at 9:53AM

I was under the impression that the indemnity policies didnt cover you for any structural defect? It only covers you against any action taken by the council in respect of lack of planning permission/building regs?

We are purchasing at the moment and have had this problem and our solicitor has advised us that the indemnity wouldnt pay out if the extension collapsed...

I might be wrong

tbs624 · 17 August 2008 at 1:11PM

Rebchappers wrote: »

I was under the impression that the indemnity policies didnt cover you for any structural defect? It only covers you against any action taken by the council in respect of lack of planning permission/building regs?

We are purchasing at the moment and have had this problem and our solicitor has advised us that the indemnity wouldnt pay out if the extension collapsed...

I might be wrong

No, you are right

Mad101daN · 15 September 2008 at 3:55PM

Is there anywhere you can compare the price of indemnity insurance ? We may need to get some for our house we are selling, can we shop around for this ?

constanta · 30 October 2008 at 12:42AM

H, I am buying a house wich has an extension built on the rear without planning permission. The solicitor says that she will get an indemnity policy which will cover me for this extension. I did not yet seen this indemnity policy and before I exchange contracts (or not) I wish to ask if anyone had this experience with this kind of things and if this indemnity policy is enough and if I maybe I will have to knock down that extension.
Can I put things right with the Council and building regulation after I buy and move in the house? Thank you guys.

poppysarah · 30 October 2008 at 9:41AM

The indemnity policy needs to be checked out. What does it actually do?

Sorting out the building regs after something's been built will be hidieously expensive. I think you should be able to track down figures on your coucil's website. It also might involve having workmen out to strip off plaster to expose steels for the BCO to check. You'd have to pay for all that work uncovernig and then recovering.

PP is something entirely different. The council can ask you to rip it all down and take you to court to do it.I'm pretty certain an indemnity policy isn't going to cover you for the costs of that.

You need to go back to your solicitor and ask them exactly (and for them to explain it in writing with a copy of the indemnity so you can read it) what it protects you about.

Much as you might like the house the potentail for nightmares is there so take plenty of legal advice now.

silvercar · 30 October 2008 at 9:51AM

Indemnity policies in these circumstances generally cover the loss in value of the property caused by the council taking remedy action.

Apart from giving you peace of mind and the ability to sell your house they are generally worthless as any action for lack of building regs has to be done within a year, any action for lack of planning permission within 4 years, any action for change of use within 12 years. The policies don't give you protection for rectifying dodgy building work or improving old works to meet current regulations.

Indemnity insurance ?

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