Lack of building regulations approval indemnity insurance
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If you're solicitor recommends you take out lack of building regulations approval indemnity insurance before purchasing a home you shouldn't worry that the building work carried out is unsafe. In many cases previous homeowners will avoid building regulations approval if the process was time consuming, or seen as unnecessary for small alterations.
How Does a Solicitor Know I Need Indemnity Insurance?
Most good solicitors will perform a search prior to the sale of the house. In particular they will investigate all building work carried out at least 12 months ago and perform a local authority search to see whether proper building regulation approval was sought. If not, your solicitor will recommend taking out building regulations approval indemnity insurance before purchasing the home, provided you meet certain criteria for indemnity insurance.
Who Pays for Indemnity Insurance?
The current homeowner will normally take out lack of building regulations approval indemnity insurance themselves. Once indemnity insurance has been taken out on a home it is transferred to each owner throughout the life of a property. A buyer isn't considered responsible for taking out indemnity insurance, particularly in the case of building regulations, as the work was not carried out under their ownership.
What Does Indemnity Insurance Cover?
Lack of building regulations approval indemnity insurance covers the financial costs associated with local authority enforcement, such as legal costs, further alterations and removal of the building work. In some cases, the insurance will cover the value lost on the home from local authority enforcement. However, a local authority cannot have made contact regarding the lack of building regulations for indemnity insurance to apply.