Indemnity Insurance Required

mymite060708

I am moving into a new house and because the development is only 2 years old and the road has not yet been adopted the lender is asking the seller to purchase suitable indemnity insurance against the risk of any loss due to the road not being adopted. Does any one know where you get this insurance and how much the premium would cost?

Thanks

minimike2

Your solicitor should be able to arrange this for you. Have you spoken to them about it?

mymite060708

yeah, they basically said they informed the seller solicitor who sounded very confused about what was required. Will they be able to get insurance for this?

minimike2

Oh right. I would have thought it would be your solicitor who would arrange it.

I have no idea how much it would cost to be honest as I have never come across the need for this cover, but I would expect it to be pretty cheap.

Give your own solicitor a call and see what they say.

mymite060708

my solicitor is saying he can't find any insurance that will cover the fact that the road is unadopted- does anyone know of any?????

JimmyTheWig

Maybe such a thing doesn't exist! I don't know.
Your solicitor was the one who suggested it in the first place. If he can't find then I don't know who can.

Just to clarify, it is thought that the road will be adopted, and you are buying on that basis. And so you want compensation if the road doesn't get adopted.
I can see why you would want that. Hope you find a policy for it.

TEDDYRUKSPIN

Actually it does exist.

This is arranged by your solicitor! The cost will vary. Basically the lender is willing to offer you the mortgage on the basis that road you mentioned is carried out with out de-value or causing any problems with the property.

SOLUTION:

Get you solicitor to contact the lender to recommend a company who will sell you this.

Tiddler_2

Usually the developer will arrange a bond that will confirm that the roads and sewers for the property will be made up to standard acceptable for the local authority.

If they aren't prepared to lodge this bond, then lenders usually make a retention (used to be around £500 - £1000).

I've just done a google search for road bonds and come across this

http://www.nhbcbuilder.co.uk/Buildersupportservices/Roadsewerbonds/

I'm guessing that the developer is offering a NHBC warranty with the property - if so perhaps they should be looking at this NHBC scheme!!

I've not read all of the pages so forgive me if it isn't relevant to your situation.