chancel insurance -first time buyers

Whats_The_Scores

Hi!

We are first time buyers and are currently getting quotes from various solicitors. One who has been recommended to us by s family member is insisting on chancel insurance as part of the searches... Is this common practice? We have only seen it once.

kirkbyinfurnesslad_2

Are you near a church

MoJo

We have just come across this with the property we are buying.

Apparently it's from Medieval times when landowners were required to contribute to the maintenance and repair of the Parish Church.
We've been quoted £18 for the search and advised that insurance can be taken out at £60 pa if your property is at risk.

Our property is near a Church and there aren't many other properties on the area so we are going to have it done.

huckster

Up to you, but the Chancel Insurance issue only came about, because of 'one' case that received publicity a few years back. If your property is within the area of a Church who registers their potential claim, by a certain point this year, then it might be worth it. Most of the policies are for a 'one-off premium' and not per annum. If you are being quoted £60 per year, that is very expensive. Search online and you will find a better deal. Make sure that any policy is transferable to anyone buying your house.

There is a good article online about this issue, by Clutton Cox Solicitors.

MoJo

Interesting reading.

If we need the insurance I'll research the costs, hopefully we won't need it.

asharon

that seems very high mine was 10.60 but maybe it is a lower risk area ?

System

I was warned by my solicitor that you have two options:

1) Do a search to establish that your property is not affected

OR

2) Take out insurance just in case it is.

What you MUST NOT DO is do a search and then take out insurance, because you cannot insure against a known eventuality.

You need to do one or the other.

InsideInsurance

Clifford_Pope wrote: »

What you MUST NOT DO is do a search and then take out insurance, because you cannot insure against a known eventuality.

I havent read the T&Cs of any policy but it is not a known eventuality.

If you have a mortgage you have a liability to maintain the state of your property but you can get buildings insurance despite that liability. This is the same, you'd know you have a liability for contributing to maintain the church but should still be able to insure against it as it isnt known if there will be a need for repairs and that they ask for you to contribute within the policy lifespan.

System

InsideInsurance wrote: »

you'd know you have a liability for contributing to maintain the church but should still be able to insure against it as it isn't known if there will be a need for repairs .

That's a different kind of insurance, and much more expensive.

The normal scenario is that no one knows whether there is a potential liability or not. It takes a lot of digging around to find out. Churches often don't have the resources to do the research to find out. But they might, and that is the risk. It is a very small risk, a) that there is a liability at all, and b) that even if there is a liability, they will ever find out.

But now that this is coming into the public eye, and with increasing financial difficulties in maintaining churches, the potential trend is there.

It is very similar to taking out an indemnity in case the council discover that some building works were unauthorised, or that there is a potential right of way through your property. There is a small risk, so you can insure against it.
But once the risk is quantified, and you have been served notice, it is too late to insure, or else it becomes much more expensive.

Or another example, if you are averagely healthy, you can take out life insurance. But if you have a health check-up and discover that you have a high risk of some particular disease, then you won't get insurance against it, or it will be more expensive.

That's how insurance works - don't do research into your risk unless you are confident it is a low one

Yorkie1

MoJo wrote: »

We have just come across this with the property we are buying.

Apparently it's from Medieval times when landowners were required to contribute to the maintenance and repair of the Parish Church.
We've been quoted £18 for the search and advised that insurance can be taken out at £60 pa if your property is at risk.

Our property is near a Church and there aren't many other properties on the area so we are going to have it done.

Are you sure it's not a one-off cost of £60?