Legal Indemnity Insurance
Legal Indemnity Insurance
- All legal indemnity risks considered
- Property and land title & search issues
- Restrictive covenants
- Residential & commercial risks
- Very competitive pricing
What is Legal Indemnity Insurance?
Legal indemnity insurance is a specific cover used in conveyancing transactions. It is useful in situations where there is some form of legal defect (for example, a missing landlord, or a lack of planning permission) that is likely to take time to resolve / is unresolvable, but which is unlikely to cause any actual loss. It can be provided for existing residential and commercial properties, as well as new site developments. Cover may be considered for pre-planning for some new developments, depending on risk.
The cover becomes effective where a legal challenge is brought in respect of a legal defect. For example, you buy a property with an extension for which there is no planning permission and some time later, the local authority serves an enforcement notice. In this situation, cover would potentially protect you from costs:
- The legal costs incurred in defending the claim
- The reduction in value of the property as a result of successful enforcement
How does Legal Indemnity Insurance cover work?
Unlike most insurance policies, which run annually, with Legal Indemnity Insurance you usually pay the full amount in a lump sum, upfront. However, the cover stands forever in most instances. It can be purchased to cover a range of potential issues (see below) and can be tailored to suit the specific circumstances (for example, with a flexible indemnity limit).
Legal indemnity insurance
Bespoke insurance and risk management programmes for all sizes of business
Who needs Legal Indemnity Insurance?
Anyone who is looking to purchase or is in the process of purchasing a property where there is a potential legal defect should consider the benefits of Legal Indemnity insurance. It can be taken out by the purchaser, or where there is a mortgage involved, the cover can be taken out jointly by the owner and the mortgage provider.
It’s a worthwhile consideration for all property types, both commercial and residential, because a property is typically a substantial investment. What would the impact on the value of the property be if, using that earlier example, you were required to remove an extension? What would the impact be if a key access point became inaccessible?
Why choose BJP Insurance to buy Legal Indemnity Insurance?
With many years of experience placing insurance for the construction sector, the experienced broking team at BJP Insurance Brokers can provide you with support and advice for all your legal indemnity insurance needs.
Both commercial and residential situations can be sourced, but increasingly careful underwriting regard is currently given to anything of a commercial nature bearing in mind the current economic climate.
Please call Brogan Welborn or Emma Hunt now on 0118 979 2121 to discuss how we can help you.
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For independent advice and fast quotes for your legal indemnity insurance
Various Legal Indemnity Insurance Cover Available
Most common problems affecting title, and often development sites:
- Restrictive covenants (freehold and leasehold)
- Lack of Easement access/services
- Interference with third-party rights such as rights of way, services, mining rights
- Ownership problems relating to title – adverse possession, registered possessory title
Other standard problems can include:
- Chancel Repair
- Flying Freehold
- Insolvency Act
- Maisonette Indemnity
- Search Covers (validation, re-mortgage, search delay /no search)
- Absent Landlord
- Planning Permission and Building Regulations
- Good Leasehold Title and Lost Title Deeds
Other less common problems include:
- Village green applications
- Judicial review of planning
- Mines and Mineral Rights