MOFS Guide to Legal Indemnity Insurance - Flipbook - Page 20
Lack of Building Regulations sign-off and/or
Lack of Listed Building or Conservation
Lack of Planning and/or Building Regulations indemnity policies offer
cover where there is a lack of evidence that planning and/or building
regulations consent has been obtained for works carried out to a
residential, commercial or mixed use property. These can be anything from
a flat conversion to lack of certification for the installation of windows, gas
boilers or wood burning stoves. Any loss would ultimately arise from the
local authority subsequently taking enforcement action.
There is no time limit for a local authority to take enforcement action in
respect of lack of listed building consent, but insurance cover to mitigate
against this can be obtained.
Use of the property in its current form would have to be continuous for
usually 12 months or so prior to policy inception, although in certain
circumstances a shorter period of time may be acceptable.
However, if the property is being developed or there is to be a change of
use which requires planning, insurers can sometimes offer cover when the
works are fully completed and signed off, but this will depend very much
on the nature of the works both carried out previously, and to be carried
out in the future; accordingly, any contact with the local authority about the
works to be covered would usually be prohibited by the policy, or need to
be covered on a case-by-case basis.
Cover is also available for discharge of conditions contained within
a Section 106 Agreement, depending on the nature of the condition,
monetary value attached and enforceability as decided by the
Similar to the cover noted on the previous page, lack of evidence of
listed buildings regulations consent, for completed works, would offer
cover where the local authority takes enforcement action in respect of the
Cover is available in various forms within the market for works that are
internal, external or both, but again this is decided very much on a caseby-case basis. Some works are clearly more risky than others and the
potential remedies by insurers in the event of a claim are reflected in the
premiums; for example, were enforcement action to be taken in relation
to a satellite dish on the outside of a listed building, the insurer would
ultimately remove the dish, whereas if a significant listed structure has
been irreparably removed or replaced, insurers may take a more cynical
view of the risk.
Again, contact with the local authority about the breaches to be covered
would usually be prohibited by the policy and future development or
change of use would need to be managed and approved by the insurer
Insurers may also ask to see:
•Any ‘before and after’ photographs showing the effect of works
completed, where available.
•A buildings survey containing precise details of works undertaken at
Did you know...
Lack of Planning Permission and/or Building Regulations
policies are amongst the cheapest in the market, but are the
risks generally associated with the largest number of claims.
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