Build Over Insurance

klaw0306

Hi. I'm selling my Mothers house. In 1975 my Father built an extension that was built over his private drain.  This was allowed at that time.  In the early 80's there was a new build next door that joined onto his private drain, at that point it became a public drain.  In 2011 the water boards took ownership of all public drains.

The solicitor for the buyer of the house wants me to pay for an indemnity insurance for 'Absence of Build Over Agreement'.  I told them that there could never be a build over agreement because at the time the extension was built one wasn't required but they insist and my solicitor has setup a policy to cover this.

I spoke to the insurance company who issued the policy and asked what does it cover?  The said it was there incase the water board dug up the floor of the extension to fix the public sewer and didn't put it back, the policy saves me the hassle of taking the water board to court to get the floor put back as was as the insurance would cover the cost of putting the floor back.

I spoke to the water board who said that would never happen and that they would always put the floor back as it was there duty of care.

If that's the case why am I buying insurance that will never be used???? If the water board always complete the work why would I invoke the policy to get the work that doesn't need doing done?

Anyone have an answer please?

Kev.

steve866

A verbal statement referring to a duty of care probably isn’t very solid legal ground, most of these indemnity insurances are covering for something that is a one in a million chance of happening. How much did it cost? 

Section62

klaw0306 said:

Hi. I'm selling my Mothers house. In 1975 my Father built an extension that was built over his private drain.  This was allowed at that time.  In the early 80's there was a new build next door that joined onto his private drain, at that point it became a public drain.  In 2011 the water boards took ownership of all public drains.

It wouldn't have become a "public drain" in the early 1980's unless the sewerage undertaker adopted it (which would be quite unusual at the time).

When the neighbour connected their pipe to your parents, the pipe in your parent's property became a shared private sewer.

It would have become a public sewer in 2011.

(the 2011 change didn't affect drains/sewers that were already public)

The indemnity policy is unlikely to provide very little value, but if it is cheap then it may save a much higher bill from your solicitor to argue the point.

klaw0306

Thanks for all the replies.  The insurance was £330 + vat.  My solicitors fee for arranging the insurance was £85 + vat for each indemnity insurance.

It has now been resolved.  If the extension was built before 2011 you do not need indemnity insurance for 'absence of a build over agreement'.  Both sets of solicitors have now agreed this, the policy has been cancelled.

Also, if the extension was built before 1985 you do not need indemnity insurance for 'absence of a completion certificate', something else we were told we had to buy. Completion certificates, under the Building Regulations, did not come into being until 1985.

Doozergirl

klaw0306 said:

Thanks for all the replies.  The insurance was £330 + vat.  My solicitors fee for arranging the insurance was £85 + vat for each indemnity insurance.

It has now been resolved.  If the extension was built before 2011 you do not need indemnity insurance for 'absence of a build over agreement'.  Both sets of solicitors have now agreed this, the policy has been cancelled.

Also, if the extension was built before 1985 you do not need indemnity insurance for 'absence of a completion certificate', something else we were told we had to buy. Completion certificates, under the Building Regulations, did not come into being until 1985.

Thank goodness. 

They were really pushing it with the interpretation that everything needs to be retrospectively approved.  

The experts often aren't... 

TheJP

klaw0306 said:

Thanks for all the replies.  The insurance was £330 + vat.  My solicitors fee for arranging the insurance was £85 + vat for each indemnity insurance.

It has now been resolved.  If the extension was built before 2011 you do not need indemnity insurance for 'absence of a build over agreement'.  Both sets of solicitors have now agreed this, the policy has been cancelled.

Also, if the extension was built before 1985 you do not need indemnity insurance for 'absence of a completion certificate', something else we were told we had to buy. Completion certificates, under the Building Regulations, did not come into being until 1985.

Also the fact that you contacted the water board would invalidate the indemnity insurance?

housebuyer143

Im glad sense was seen. I have this issue with my extension I am selling now and plan to argue it if they start asking fofr build over agreements!

Section62

klaw0306 said:

It has now been resolved.  If the extension was built before 2011 you do not need indemnity insurance for 'absence of a build over agreement'.  Both sets of solicitors have now agreed this, the policy has been cancelled.

The BiB is true if (as in your case) the drain/sewer wasn't already public in 2011.  (mentioned for completeness)

Snookie12cat

My solicitor now says the other side wants an indemnity for the same thing!? How did you get them to see sense? As this is a waste of money and makes it sound like something was done incorrectly, when it was not.