Building Regulation and Indemnity Insurance
Any work that involves the construction and design of buildings, including alterations, extensions and demolitions, is subject to building regulations. This is to protect the property and not just a pain for builders and owners; the regulations ensure a property is safe and structurally sound after modifications, no other buildings are affected, the environment is not negatively affected by modifications and the home environment is still habitable. Building regulation indemnity insurance can be taken out if building regulations aren't followed, which protect the value of your property should any finance be lost due to lack of regulations.
Alternative, Not a Fix
Building regulation indemnity insurance is an alternative to fixing problems caused by lack of building regulations. You're only protected financially for loss of value to a home and if local authorities place enforcement on you for failing to follow correct procedures. The insurance is a one-off premium to cover the property owner if a section 36 should be served.
Section 36 Breach of Building Regulations
Building regulation indemnity insurance only covers owners is a Section 36 is enforced by a local authority. Once the notice is served the owner of the land must either remove the building work or carry out further work to comply with building regulations. This notice can only be served 12 months after building work was complete; if the local authority later than 12 months after completion they must go through court.
Criteria for Building Regulation Indemnity Insurance
For building regulation indemnity insurance to be valid the following must be met:
- Work was carried out at least 12 months prior to the policy.
- No application for approval to local authorities have been made, whether refused or approved.
- Neither buyer nor seller or the property were aware of local authorities putting notice on the property for failing to follow building regulations.
- The home must be used as a residential dwelling for at least 12 months.
- A valuation or report must have been carried out that did not include any adverse comments about the quality of the building work.
- Flickr: Home Construction