Anyone ever had to claim on an indemnity policy?

pete1717

timmyt wrote: »

the policies work a treat, all of you need to understand the point of them and you all clearly do not.

they cover loss in value should whatever the risk insured against occur. not rocket science. that is insurance

the Buyer is demanding them, so the policy is offered.

e.g

- covenant against bulding - if objector comes along, the policy will buy them off or pay the loss in value of the home -
result.
- lack of building reg consent - the surey says the work is fine, so no issue. But if the COuncil enforce (which they won't...but try telling a cheap and nasty conveyancer that who has no IQ) it covers cost of the work. For £30 it gets the stupid lawyer off your back. result
- lack of access to your property - if objector comes along, the policy will buy them off or pay the loss in value of the home -
result.

oh the list goes on[/QUOTE


Yes timmyt, but you can explain to the Client that the LA are unlikely to take enforcement proceedings after a certain amount of time etc.etc. and if they are happy with this they will likely be happy to proceed without any type of Indemnity Policy. But then you have your Lender to satisfy - try writing to certain Lenders to tell them there is no Building reg consent for works and the first thing they will tell you to do is to put an Indemnity Policy in place and to proceed providing this poses no risk to them ! You can also guarantee that if instructed to sell the property at a later date, the Buyer's conveyancer will ask for B. reg consent or a policy for lack of. Who pays then??? If you have not taken one out for your Client when purchasing the property they will want to know why when the new buyer's solicitors think it is necessary and wont proceed without it, and so it goes on. This is why the indemnity companies are doing so well - as previous posters have said, are they ever claimed on??

Richard_Webster

But then you have your Lender to satisfy - try writing to certain Lenders to tell them there is no Building reg consent for works and the first thing they will tell you to do is to put an Indemnity Policy in place and to proceed providing this poses no risk to them ! You can also guarantee that if instructed to sell the property at a later date, the Buyer's conveyancer will ask for B. reg consent or a policy for lack of. Who pays then??? If you have not taken one out for your Client when purchasing the property they will want to know why when the new buyer's solicitors think it is necessary and wont proceed without it, and so it goes on. This is why the indemnity companies are doing so well - as previous posters have said, are they ever claimed on??

I agree, this is because of Lender Bureaucracy - they won't use their common sense. However, a lot of the comments on this thread have been about Building Regulation Policies which largely exist because of lender stupidity/bureaucracy, i.e. easier to get a policy than have a time wasting argument with a lender about the pointlessness of a policy.

Policies for matters such as enforcement of restrictive covenants, lack of easements for access and services, inability to compel maintenance of other parts of a building divided into flats, flying freehold indemnities, and many others, do serve a useful purpose. They compensate in respect of real risks, that may be small, but cannot be ruled out.