Indemnity insurance

mahoney

We are about to exchange contracts. Gulp. The Home buyers survey highlighted that the chimney breast had been partly removed, so the solicitor tried to find out if permission had been gained to do this etc, but the previous owner knows nothing (he owned since 2005). The solicitor said to me not to worry becasue an indemnity insurance can be taken out. In the latest letter I've just red, it sounds like we may have to pay the indemnity, and we may need to get one for the double glazing too.

Do we need to take out indemnity ins? I'm concerned about the chimney breast as it's load bearing. What do you think? Who sorts the indemnity ins out?

Thanks!!!!!!!

DVardysShadow

mahoney wrote: »

Do we need to take out indemnity ins? I'm concerned about the chimney breast as it's load bearing. What do you think? Who sorts the indemnity ins out?

Indemnity insurance helps you if the council discover for themselves that there is no building regs approval and make you put it right. It does nothing for you if the load bearing capability is deficient and you have to put it right - and in case thought crosses your mind, it is invalid if you tell the council about the regs and they then order works to put it right.

If your concern about the work relates to a structural deficiency, get a structural fix - reserve indemnity insurance for regulatory problems.

mahoney

Thanks. I read that council approval is held for 10 years, so 10 years after the event no one can say if there was planning permission or not, is that true?

Worst case scenzario, anyone know how much it would be to put the chomney back?

Richard_Webster

First this is nothing to do with planning - it is building regulations - not the same!

Second an indemnity policy for Building Regulation issues would cover the windows and the chimney breast - you only need the one policy.

Third, the policies are mainly there to satisfy mortgage lenders who cannot seem to take a realistic view about the real likelihood of enforcement action being taken by the Council, which is almost nil.

Fourth, if the chimney breast has been removed say on the ground floor but remains in the first floor or in the roof space then it will need to be supported. If it is not properly supported then there could be structural damage to the property later and an indemnity policy will not pay out for that!
Less likely, but in some cases double glazing that has not been put in properly can result in structural damage. In this area you may need to have a surveyor advise about the likelihood of problems in the future.

tek-monkey

This is posted in another thread, but though putting it in one related to indemnity insurance may be more useful.


I am trying to purchase a property with an extension, built around 1976. This property is built over a drain, my lender required a buildover agreement. My vendor contacted Severn Trent, who said they only took ownership of the drain in 1999 and therefore don’t care as long as a certificate of completion was obtained. The council only hold records from 1985, so cannot prove this certificate. The vendor does not have it, the property was built by the previous but 1 owner.

The problem is that without this certificate, the lender wont lend. The certificate may have existed, but we cannot get a copy regardless. As the vendor has contacted both Severn Trent and the council, is there any form of indemnity insurance that can still be obtained?

jules1213

Sorry - posted same issue on another thread. Exact issue with chimney breat - done over 40 years ago - does have rsj to support but no building cert.

I think we will be forced to take out indeminity isuracne but think it is already invalidated due to asking council for advice and thus informing them of the nature of the structual change and the address of house!

Would appreciate your comments Richard.

Thank you

Jules

planning_officer

mahoney wrote: »

Thanks. I read that council approval is held for 10 years, so 10 years after the event no one can say if there was planning permission or not, is that true?

Er, definitely no - my Council has every plan dating back to 1948 on file (when the requirement to obtain planning permission was first introduced!), and I'm sure most Councils are the same.

Like Richard says above, this has nothing to do with planning permission anyway - you don't need planning permission to demolish a chimney breast. If it's a listed building, then Listed Building Consent would be required though, and that's enforceable in perpertuity.