Devaluation Insurance is there such a thing?

Occy

A cursory glance through google makes me think there isn't such a beast, but is anyone aware if you insure against possible house devaluation caused by say large scale development of land on the doorstep or the placements of a travellers site next door by the local council?

Thanks
Occy

chris_m

I'm sure some insurance company would consider it, just like bookies will accept bets on just about anything - but the premium would likely be astronomic, possibly more than the potential loss.
Of course, if it were to transpire that the plans were already being mooted (otherwise, why would you be asking) then the more ethical insurers would probably decline to offer cover, whilst the less so would offer cover, take the money and then decline to pay out.

Occy

I guess not then. Shame as I have a wife paranoid that as we have moved to a home surrounded by fields we are bound to have it blighted by housing development or travellers.

I am not sure I understand " (otherwise, why would you be asking)" phrase, surely no one is going to insure themselves against a risk they perceive could not happen.

Don't underestimate the potential loss:

http://www.mirror.co.uk/news/uk-news/tragic-pensioners-carried-out-suicide-5479965

Nasqueron

Occy wrote: »

I guess not then. Shame as I have a wife paranoid that as we have moved to a home surrounded by fields we are bound to have it blighted by housing development or travellers.

I am not sure I understand " (otherwise, why would you be asking)" phrase, surely no one is going to insure themselves against a risk they perceive could not happen.

Don't underestimate the potential loss:

http://www.mirror.co.uk/news/uk-news/tragic-pensioners-carried-out-suicide-5479965

Occy - I think the assumption would be that you know of or have heard about a development or traveller's site (or they have been there before temporarily) being mooted for the land, hence wanting this cover - it's essentially like if your mate works in HR and gives you a note saying your section is up for redundancies and then you suddenly take out some form of income protection insurance and claim on it a few months later - no-one is saying you're trying it on but rather it may be viewed as suspicious

pinkteapot

You can get insurance for virtually anything through Lloyds brokers, but a bespoke policy will cost a fortune.

There is a risk with buying next to open fields. It's a trade-off - a lovely view but the potential for development on it in the future. I'd imagine development is far more likely than a traveller site - they're not as common as they Daily Mail would have you believe.

stator

The solution could be to pay the people who own the land for a covenant not to develop it. If they don't plan on developing it then it's easy money for them but it might increase the value of your house. If they do plan on developing it then you haven't got much hope.

lincroft1710

Why did your wife agree to move to such a house if she has this paranoia?

However there must be an element of truth that every house in the country which is surrounded by fields will be deemed suitable by the local council to have a travellers' site next door. I think not.

If you are in a green belt, you can rest fairly easy, if not and your house is only 50 metres or so from a built up area, there is a likelihood of development within the next few years. Looking at the county development plan will give you an idea of whether there is a possibility of development.