Indemnity Insurance Galore

ElPolioLoco

i am in the process of a house purchase which after TQ has generated the need for 3 indemnity insurance policies.

- The first to cover a lack of build-over agreement to a public sewer at the rear of the property
- The second to cover a possessory leasehold that exists on the property should a claim be made on the lease
- The third to cover a lack of building reg paperwork for a partial removal of a chimney brest and wet room installation

The build over agreement only protects me for 10 years and the mortgage lender for 30 and the other two policies are in perpetuity.

my question is should i be concerned with the number of policies? My conveyencer gives me a rather vanilla answer that i need to consider the defects. Which isn't particularly helpful.

should i be concerned? am i walking into trouble. the first policy i can seek to renew in 10 years time when it expires and i understand the implications.

wondering if anyone has experienced anything similar?

thanks in advance

Satansallsmiles

It depends I think - I'm selling at the moment, and will need 2 indemnities for any buyers - The first is for the double glazing not being FENSA, and the other is an electrical Cert for a new circuit board after the company supplying went out of business before certifying - These seem fairly minor, and I'd hope wouldn't spook people.

yours seem a bit more structural, and I'd question whether the extensions / chimney breast removal were done professionally as there are likely implications if not, but there could be perfectly reasonable explanations for all of them.


Worth asking more questions I'd say.

hazyjo

Give it 5 years, I reckon people will be needing even more lol. I just sold with 3 indemnity policies (think it was for a window, a removed wall and can't remember what else) and forget how many were on the one I bought. At least two.

SmashedAvacado

- The first to cover a lack of build-over agreement to a public sewer at the rear of the property

This is the most concerning. Your property is over a public sewer and it is possible that some works will need to be done to the sewer which will involve knocking your house about. Thats quite unlikely and the policy covers you if that happens.


- The second to cover a possessory leasehold that exists on the property should a claim be made on the lease

Presumably this doesnt impact the whole of the property - but only a part. Its hard to understand the impact of this without knowing the background.

- The third to cover a lack of building reg paperwork for a partial removal of a chimney brest and wet room installation

This is no big deal. if you are happy with the way the property is now and the surveyor is happy your risk is the same had you bought an old house where this work was done a long time ago.

AlexMac

I agree the concensus above; the 1st two are no big deal -
We have a sewer running under our house with inspection hatches in front and rear yards and one inside, under a former garage now converted to a habtable room. None have ever had to be lifted in the 30 years since our house was built. Even worse, a neighbour's extension foundations were piled through a similar sewer ages before he bought it, and when it eventually became apparent- 6 years or so after the damage, the Water board fixed it (as despite being on private land, it's a shared drain which is their liability) and did it all from outside...

Of the latter- the wet room either leaks or it doesn't and when the chimney breast was removed, it either had the stack above(on upper floors, in the loft and/or above the roof ) removed or strengthened to sustain the weight and prevent it collapsing down.... or it didn't. Any decent builder or surveyor can tell. My cousin had such; cost a few hundred to run supporting joists in the loft (couldn't remove the chimney top as the adjacent neighbour still shared it with live fires)

So all sortable; the indeminities are of minor consequence; you just want a safe, dry house!

ElPolioLoco

thanks for the feedback.

the property has both a freehold and leasehold. the leasehold is covered by a possessory title which the policy is for. its a 99 year lease taken out in 1935. i have been advised that after 12 yrs of occupation i can apply to remove the leasehold and make the freehold title absolute.

the build over agreement is the one i am most concerned about but it seems that from responses and what others have posted elsewhere that this more common than i thought.

thanks again.

ACG

I sold my house last year with 2 policies:
1) for an internal non load bearing wall being taken down about 40 years ago (still irritates me).
2) I replaced a window and did not get a FENSA certificate.

Your conveyancer is covering their backs, but at the same time you are paying for their time and experience. Do you have a proper solicitor or an online cheap and cheerful company? Ask them of the implications and the likelihood that there will be a problem down the line.

ElPolioLoco

ACG wrote: »

I sold my house last year with 2 policies:
1) for an internal non load bearing wall being taken down about 40 years ago (still irritates me).
2) I replaced a window and did not get a FENSA certificate.

Your conveyancer is covering their backs, but at the same time you are paying for their time and experience. Do you have a proper solicitor or an online cheap and cheerful company? Ask them of the implications and the likelihood that there will be a problem down the line.

its is a proper solicitor and to be fair he has done his work. the only bit he seems to hold back on being direct with this question. so when i posed this question to him he just said ' you need to consider the implications that come with each' - as you say he is probably covering his back.