Indemnity Insurance: Lack of Building Regs
Building regulation consent is required when making modifications to a property, such as building extensions. If building regulations aren't sought the owner of the property could face enforcement from local authorities. If someone is buying a home and building regulations weren't sought for the property then the buyer will be responsible for facing enforcement from a local authority... which is where indemnity insurance for building regs comes in.
Building regulations are needed when any kind of alterations is made to a property. Not only does this ensure the new addition doesn't disrupt any other land or property but it also ensures the new building work is safe and secure. Most of the time any good builder will apply for building consent but often the home owners may push the builder to begin work without regulations.
Local Authority Involvement
Most the time a local authority will instruct the homeowner to pay a fine, remove or alter the structure within 12 months. It's unlikely that they will take enforcement after the 12 month period but it's certainly not unheard of. Unfortunately, indemnity insurance for building regs cannot be sought unless the property was altered at least 12 months ago.
Indemnity Insurance for Building Regs
If you are selling your home and did not seek building approval when making alterations the buyer will expect you to pay for the indemnity insurance, which is a one-off payment. You might not be able to sell your house without this insurance. The policy will only cover you (and all future homeowners) financially from local authority enforcement; if a local authority requests you destroy the structure the indemnity insurance won't prevent that and will only cover you for the cost, for example. Furthermore, indemnity insurance for building regs will not cover you for any defects in the structure that you need to fix.
- Flickr: Builder