Conveyancing Insurance

Where a property lacks a legal easement in respect of:

• Vehicular &/or pedestrian access to & from it, or
• Use of services (including access for maintenance/repair) connecting to and serving it

This can be in respect of the continuing use of a property or where change of use or development is intended.

Risks Covered: Damages/compensation awarded to a claimant, adverse difference in market value, out of court settlements (subject to the agreement of the Insurer), cost of obtaining a legal easement in respect of the access/ services

Where the landlord of a leasehold property cannot be traced or is in liquidation or receivership. Consequently rent is not being paid or demanded & consent cannot be obtained for work to the Property or assignments of the lease.

In circumstances where a development is going to give rise to a breach of a leasehold covenant, a separate Restrictive Covenant Indemnity may be required.

Risks Covered: Losses arising as a consequence of action taken (including rights of re-entry) in respect of arrears of rent/service charge, failure to comply with assignment conditions, breach of covenants in lease in relation to works carried out on the property.

This includes market value of the Property should the Insured be dispossessed or evicted under a court order damages payable to &/or costs & expenses recoverable by the landlord and/or costs and expenses necessary for an application for relief from the court.

Where a search in respect of the property indicates that the property is or may be in an area of contaminated land.

Risks covered: the cost of any contribution demanded by the authorities toward the cost of removing historic contamination together with costs and expenses.

Losses arising where insurance provisions &/or reinstatement provisions are inadequate for the protection of the Property including situations where:

• Other parties are responsible for insuring all or parts of the premises,
• The insurance may be vitiated by other parties, or
• There is no obligation on the part of the landlord to reinstate the Property or to disburse insurance monies.

Risks Covered: losses arising from inability to fully reinstate the property &/or premises.

Where a part of a Property requires support from or provides support to another freehold premises part of which is built above or below the insured Property and there are no

• Adequate rights of support and protection from or covenants for repair and maintenance of the premises adjoining above or below the Property, or
• Rights of access onto such premises for the purpose of carrying out necessary repair or maintenance of the Property

Risks Covered: Losses arising in respect of freehold properties other than a freehold flat or maisonette where part of the Property has a flying or creeping freehold. Cover includes losses sustained as a result of inability to undertake or enforce or obtain reimbursement/appropriate contributions from the owner(s) of the premises in respect of maintenance/repair work necessary for the protection of the Property.

Where there is a danger that a lessees tenure may be lost as a result of the activities of a superior lessee resulting in the superior/head lease being forfeited. Risk covered: losses resulting from the loss of the leasehold interest, or any amount paid with the agreement of insurers to secure the on-going lease, costs and expense.

Where a Property has been registered at the Land Registry with good leasehold title but there is a risk that a third party may seek to establish a right or interest in the property.

Risks covered: Losses including damages/compensation awarded against the Insured, adverse difference in market value, cost of works required by a court order, cost of settling out of court as agreed with Insurers and other costs and expenses.

Where a Deed of Enlargement of a leasehold interest into Fee Simple is potentially ineffective.

Risks Covered: Losses damages/compensation awarded against the Insured. Cover includes adverse difference in market value, cost of works required by a court order, cost of settling out of court as agreed with Insurers and other costs and expenses.

Where a Property has been the subject of a Deed of Gift or Transfer at Undervalue and may be subject to the provisions of the Insolvency Act 1986 resulting in the transaction being set aside. Cover is not usually available to the parties to the original transfer but to subsequent purchasers and mortgagees.

Risks covered: Losses including loss of market value, sums paid under an order to protect the Insured’s interest in the Property, losses sustained under a mortgage advance, other agreed costs and expenses.

Where planning consent has been granted and a developer is concerned that a challenge may be raised on the basis of certain irregularities. Risks covered: losses arising from delays in development, the overturning of the original planning consent and the costs of an alternative planning application.

Where there is no evidence of compliance with planning /or building regulations or there is a lack of the required certification in respect of:

• Extensions/additions/alterations carried out to the property
• Conversions and/or alterations undertaken
• New/replacement doors/windows having been installed
• Installation of a new or replacement boiler
• Electrical alterations

Risks covered: loss of market value, damages and expenses arising in complying with any enforcement notice/proceedings served by the appropriate authority.

Where a valid NHBC certificate cannot be produced for an existing residential property in respect of its construction or in respect of subsequent works carried out on the Property. Cover is usually provided to a mortgagee only.

Where a valid NHBC certificate cannot be produced for an existing residential property in respect of its construction or in respect of subsequent works carried out on the Property. Cover is usually provided to a mortgagee only.

Where there is no evidence of compliance with planning /or building regulations or there is a lack of the required certification in respect of:

• Extensions/additions/alterations carried out to the property
• Conversions and/or alterations undertaken
• New/replacement doors/windows having been installed
• Installation of a new or replacement boiler
• Electrical alterations

Risks covered: loss of market value, damages and expenses arising in complying with any enforcement notice/proceedings served by the appropriate authority.

Where there is a proposed construction conversion or refurbishment of a Property and cover is wanted in respect of any defects resulting.

Risk covered: any structural defect arising post legal completion of the works. In some circumstances the cover can be extended to provide cover for premature failure of non-structural components.

Where the title deeds to the Property have been lost destroyed or mislaid.

Risks covered: losses sustained should any party establish or seek to establish an adverse interest and includes damages/costs awarded to a claimant, reduction in market value, cost of necessary works and other costs.

Where the lease to a flat or maisonette has:

• inadequate covenants in respect of rights of support/protection or repair,
• no landlord’s covenant to assume repair/maintenance obligations in respect of the remainder of the building should the landlord or a management company fail to undertake its obligations, or
• no adequate provision that future long leases will be granted in a similar form.

Risks covered: losses arising where there has been damage to the Property and the Property is not fully reinstated as the result of the defective lease.

Where there is a proposed development of a property and there is a concern that the mining and/or mineral rights to the land belong (or may belong) to a third party and the third party seeks to exercise those rights to the detriment of the property.

Risk covered: includes payment of damages, loss of value and other costs and expenses.

Where an alteration to a property has been undertaken which should have required the consent of an adjoining owner under the Party Wall Act but no such permission was obtained or the relevant documentation cannot be found.

Risks covered: reduction in value of the property together with costs and expenses.

Where all or part of the Property comprises a possessory title registered at Land Registry or is not registered and adverse possession is claimed.

Risks covered: losses sustained should any party establish or seek to establish an adverse interest and includes damages/costs awarded to a claimant, reduction in market value, cost of necessary works and other costs and expenses.

Where there is an outstanding freehold rent charge affecting the property & there may be claims arising out of demands for rent and/or breach of rent charge covenants.

Risks covered: damages/compensation awarded against the Insured, adverse difference in market value, cost of works required by a court order, cost of settling out of court as agreed with Insurers and other costs and expenses.

Where the use, or proposed use of a Property breaches known, or may breach unknown, restrictive covenants affecting the property.

Risks covered: damages/compensation awarded to any claimant, loss sustained by the Insured in respect of loss of market value, cost of remedial/demolition works and agreed additional costs.

Where there is a proposed development of a Property which may give rise to a third party claim that their common law easement to light has been infringed.

Risks covered: compensation payable to third parties whose rights have been infringed, loss of profits in the event that a development is cut back or abandoned and costs and expenses.

Where a property has been erected over a public drain or sewer whether or not there is a formal Build-over Agreement in place.

Risks covered: the cost of reinstating the property in the event access is required to the drain/sewer to carry out repair work and increased costs incurred by the water authority in carrying out repair works to the drain/sewer caused by the location of the property over the sewer and which the authority seek to recover from the insured. Cover is usually provided for a maximum of ten years.

Where a developer believes that there may be an attempt to block a development based upon an assertion that open land has been used ‘As of right’ for lawful sports and pastimes (including recreation e.g. as a playing field, for dog-walking, blackberrying etc.), for at least 20 years by a significant number of the inhabitants of any locality or of any neighbourhood.

Risks covered: loss of the value of land and development profit and other costs and expenses.

Where a property is subject to known third party rights and/or easements or may be subject to unknown rights, easements, exceptions or reservations.

Risks covered: damages/compensation awarded to claimants, adverse difference in the market value and/or the cost of works required by a court order and any cost of settling out of court.