New Build: DUAL policy

Jodz24

Hi,

Does anyone have any understanding of a DUAL all risks policy?

I'm near to exchange/completion on a new build property and my solicitor has suggested this to me as a one off policy priced at 672.

I've asked them to clarify what it covers exactly but would I be silly NOT to take out this policy? To me it sounds like it covers anything that my solicitor misses?!

On their website it states:
All risk insurance – Where there is no specific defect, but cover is required against a number of unknown risks. This is commonly used where the seller has little information regarding the property or to protect against risks that even the best conveyancer cannot detect – boundary disputes, seller misrepresentation and fraud, just to name a few. This cover provides the ultimate peace of mind, as it protects you from risks which your legal representative may not have been able to discover and protects what will probably be your most expensive ever purchase. All risks policies usually only cover the named insured, their lender and tenant for as long as they own or have an interest in the property.

Thanks in advance!

kingstreet

What kind of solicitor are you using?

DUAL is the name of the underwriter, rather than a description; which I found a little odd. Likely to pay a bit of commission to the intermediary on a £600+ premium, your solicitor, hence the question above.

I've worked in FS for 35 years, the last ten pretty much exclusively in newbuild mortgage broking and I have never once heard anyone mention this cover.

If your builder is NHBC/LABC/Checkmate (etc) registered, you are covered by this;-

https://consumercode.co.uk/

so I'm not sure why you would need something more, TBH.

Jodz24

Yes, we have a 10-year NHBC warranty on the new build so I feel this is not required. dual asset dot com forward slash products > legal indemnity and title insurance residential - that's the link to the provider and policy.

davidmcn

I can't immediately see the details of the policy, but sounds like it's mainly covering litigation costs for post-completion disputes which you'd otherwise have to fund yourself. Certainly by no means standard or even commonplace to get such insurance, and most people wouldn't bother. Your home insurance may well include legal cover for at least some of these types of dispute.

sal_III

Link: https://www.dualasset.com/products/legal-indemnity-title-insurance-residential/

I can see this being useful on a old build, but can't see any value for a new build with NHBC warranty and 2 year developer warranty for all defects. Sounds like a poor advice at best, misselling at worst.

I would consider changing the solicitor, depending on what stage of the process I'm and whether there are fees already due/paid.

Jodz24

As I expected. Thank you all.

hazyjo

Is this a solicitor 'recommended' by the developers/builders?


Never advisable to use them. They are more likely to want to keep them sweet than you. You need the solicitor to be solely on YOUR side! Sounds like this is to cover their 'lily-whites' in whatever future situation you feel they may have been keeping the developer sweet rather than looking after you.

sal_III

Excellent point by hazyjo. If this is a developer recommended solicitor and is already pulling a fast one like that - drop him irrespective of how much you have already paid (provided there isn't some penalty in the agreement for doing that). The couple of £100s lost thus far could save you £1000s in the future.

kingstreet

hazyjo wrote: »

Is this a solicitor 'recommended' by the developers/builders?

Funnily enough, I thought the opposite.

I thought "online conveyancing warehouse" when I saw the thread.

I've dealt with plenty of solicitors recommended by builders and I don't think one would ever try to pull a stroke like this. Builders want good service at a decent price for their purchasers.

Same from their mortgage brokers. We don't charge our usual fee to newbuild introductions and offer the same service.

hazyjo

kingstreet wrote: »

Funnily enough, I thought the opposite.

I thought "online conveyancing warehouse" when I saw the thread.

I've dealt with plenty of solicitors recommended by builders and I don't think one would ever try to pull a stroke like this. Builders want good service at a decent price for their purchasers.

Fair point - could be either I suppose

Jodz24

So it's not a developer recommended solicitor - it's the same solicitor I used to sell my late mother's home. I don't think new build is their speciality to be honest and feel like they're just trying to cover themselves with this. I don't think I'll proceed with this.