Building regulations indemnity insurance quote and rates
- Flickr: House Extension
Legal building indemnity insurance is a financial protection for the owner of a property who had building work carried out without proper building regulations. Buyers will often take out this form of insurance before a purchase as recommended, or request the seller to do so. In the event a local authority enforces legal action against the property for lack of building regulations, the indemnity insurance will cover all financial costs associated with such action (i.e., additional building costs, demolition and the value of the property in some cases). Indemnity insurance won't protect the building work from being removed or altered. A building regulations indemnity insurance quote will vary depending on the provider and level of insurance required, but you can only take out a policy if:
- A local authority has not been made aware of the infringement.
- The building work was carried out more than 12 montha ago.
- The home has been used as a residential dwelling for at least 12 months.
No matter what building regulations indemnity insurance quote you receive you will not be covered if the work does not meet the above criteria. Your policy will be void even if it was taken out in the first place.
The value of a property will effect the building regulations indemnity insurance quote you receive. Normally, indemnity insurance is calculated on a "sliding" scale; the higher the value of a property, the more you pay. There's no fixed scale for indemnity insurance so the actual quote you receive will depend on the provider.
The building regulations indemnity insurance quote you receive will also be influenced by the risk involved in insurance, which is why a provider will not insure work carried out less than 12 months ago (12 months is the average period in which a local authority will place enforcement on a property). The type of work carried out and the nature of the work could easily increase the price; for example, the building work may obstruct another property or infringe other regulations, which may cause later local authority action and increase the risk of local authority action.
Some firms may charge extra fees, which may not be included in the original building regulations indemnity insurance quote. Make sure you check any additional administration or legal charges before proceeding; not all firms charge additional fees, so you may be able to find a better quote elsewhere.