Where can I buy Restrictive Covenants Indemnity Insurance

dawn_simpson

My Solictor has advised that my mortgagte lend will require Restrictive Covenants Indemnity Insurance as the sellers cant prove the unknown Restrictive Covenants.

She has told me I can get a policy for property value £250k will be £180 + the VAT.

I also need a policy as the extension hasn't got building regulations this will be £75+VAT

Where can I check if these prices are fair

Thanks

NEWBIE Dawn

vikingaero

I worked for an insurance company years ago in their Indemnity department and the premiums sounds about right for the rrisk/premium. Only query is the VAT thingy. Is the Solicitor charging VAT on top and at what rate? I never had to deal with VAT on indemnity cases because the insurer never charged it or the product was zero rated.

dawn_simpson

Thanks I also work in insurance and I dont know why VAT is added either.

Any ideas where I can get quotes
Thanks
Dawn

jonesMUFCforever

Do you really work in insurance and you don't know where to ask for quotes?

Surely any insurance broker will provide quotes for you or try googling.

dawn_simpson

I work in Aviation reinsurance, all the websites I have found only sell to solicitors.

mjr600

It is possible to buy direct but you could really do with establishing what sort of restrictive covenant you have, it may be specific to the home dealing with something as simple as hedging. It may be a more complex Building Scheme covenant with many potential claimants and many restrictions. An insurance company can tailor a policy with this additional information.

A good book on the subject is available from Amazon, not cheap but at least you know you are not storing up trouble for later, a seller without building regs may be hiding covenant information on purpose although it should be fully documented on the deeds.

http://www.amazon.co.uk/Restrictive-Covenants-Freehold-Andrew-Francis/dp/0853089361/ref=sr_1_1/203-4321721-2515938?ie=UTF8&s=books&qid=1180210830&sr=8-1

It's also worth noting that conveyancers and solicitors are often poorly schooled in this area and the cop out is just to advise on a policy, with a little more work you should know what your covenant concerns.

agaveworm

Only IPT (Insurance Premium Tax) at 5% should be added to an insurance policy.

I have arranged RC policies in the past and I think that £180+IPT is fair. OK, someone might do it for a few quid less - but is it worth the hassle?

Do it - one less thing to worry about....