A guide to lack of building regulations indemnity policy
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Most modifications to a home, including extensions and the actual building a property, will need building regulations before building work begins. However, some homes may not have acquired building regulations, which does not always mean the work was unsafe. Sometimes, work is carried out without regulation to get the job finished quicker, especially if the homeowner has intentions to sell the home soon. Although building regulations do ensure work is carried out to required standards and is safe there is also a chance that a local authority will force the current home owner to make corrections, carry out additional building work or demolish the building work entirely if proper regulations weren't sort. In this case, a lack of building regulations indemnity insurance policy can be sought.
What Does Indemnity Insurance Cover?
A lack of building regulations indemnity policy will only cover the financial costs associated with local authority enforcement, such as legal costs, additional building working (parts and labour) or any fines. Some policies may also cover the value of the home should any be lost from local authority involvement.
What Is Not Covered?
Most lack of building regulations indemnity policy plans will not cover instances where additional accommodation or housing is required during building work or time off work from legal proceedings. The actual building work is not protected; indemnity insurance will not stop a local authority taking action and will only protect the current homeowner's finance on the home.
What Are the Conditions of Indemnity Insurance?
To be considered and apply for a lack of building regulations indemnity policy the following must be met:
- Building work must be carried out more than 12 months ago.
- Local authorities must not have been made aware of lack of building regulations prior to taking out the insurance. This includes anything from a notice being sent out to the owner making the local authority slightly suspicious about the lack of regulations.
- A survey or report must be carried out and must not make any adverse comments regarding the quality of building work carried out.
- The property must have been used as a residential dwelling for the past 12 months.
- Newly built properties must have been constructed at least 4 years ago (in which case the policy will cover construction, not just building work).