Building Regulation Indemnity Policy: Detailed Overview

Has your home been built, extended, or renovated without permission from building regulations? When you buy a house that has been built without permission, building regulations indemnity insurance is one way to make sure that you won’t have to pay for the damage. We will be looking into the lack of a building regulation indemnity insurance policy and its cost.

Building Regulation Indemnity Policy

The indemnity insurance is intended to protect new homeowners and subsequent owners from legal action; if the local authority issues a notice of building regulation violation. Essentially, the local authority has the authority to compel the owner; to alter or remove any work that violates building regulations. Insurance may cover the associated legal costs or fees.

In practice, building regulation indemnity insurance is rarely used, and some question its utility.

When Do I Need Building Regulations Approval?

Building regulations, also known as “building regs,” are meant to protect the health and safety of people who live in the house. Any new building construction, as well as any changes to existing buildings, must meet building regulations. Areas that must be kept safe by building regulations: 

• A new building, additions, and changes. 
• Work done with electricity 
• Fire safety is important. 
• Installations for heating 
• The plumbing is done. 
• Door and window replacements

Who Pays For The Indemnity Policy?

Often it’s the buyer, but other times it’s both. It’s also a good idea, because insurance costs so little, to offer to pay for the policy yourself. During the process of buying a house, a policy would be bought through the lawyer who did the deal. Indemnity policies are not sold directly to the public. 

Indemnity policies are a good way to make sure that; the lack of building regulations doesn’t hurt the sale of a home.

Lack Of Building Regulation Indemnity Policy

Many people don’t get planning or building permit approval. Many sellers don’t want to lose their buyers; they worry that the chain of title will break down if there is a delay in the completion of the sale. In some cases, having no planning or building regulations approval can be quickly solved; by taking out a special type of Legal Indemnity Insurance, like this one. Consequently, an indemnity insurance policy is the simplest, cheapest, and most common way; to deal with a lack of building regulations approval.

Is lack of planning or building regulation insurance available if a property owner has contacted the local authority?

The person who wants insurance for a home that doesn’t have planning or building regulations approval needs to be able to say that neither the seller nor the buyer: 

• Will be taking or has already taken enforcement action against the property because of the work that was done there. 
• Have you talked to the local planning authority about any building or planning problems that might happen at the house? 

It might be possible to get insurance even if these statements can’t be made in standard Statements of Fact, but it might not be. 

Is there a limit to indemnity in the absence of planning permission or building regulation approval policies?

The insurance period starts at the start of the policy; goes on for as long as there is a policy. There is a limit to how much money can be paid out in total. People who own a home can get their money back; up to two hundred times as much as they paid for it. 

Why do vendors, not secure planning permission or building regulation approval?

Property lawyers don’t work in an ideal world. In an ideal world, a seller would have all the correct documents; ready before putting their home on the market for sale. 

Buyers can be angry that a vendor didn’t get the right paperwork for planning or building regulations. There could be a lot of reasons why the seller didn’t get the paperwork, like the seller: 

• Thought it didn’t need to get permission because the extension was allowed under the law, but it did. 
• To tar their driveway, they thought they didn’t need permission. 
• Wasn’t planning to sell at first, so I didn’t think it was worth getting building regulations approval for the house. 
• Didn’t check because a tradesperson said planning or building regulations didn’t need to be approved, and the seller didn’t find out about it. 
• As the house is in a conservation area, planning permission is required for addition because permitted development rules don’t apply. 

People who are buying or selling homes need to be careful about how they handle the situation; if there isn’t enough planning or building regulation approval.

Making a lack of planning or building regulation approval a legal indemnity insurance claim

The policy only comes into play if a local authority takes action against you; because you didn’t get permission for the things in the policy. The cover has: 

• Assisting in a legal fight against enforcement action. 
• The cost of complying with a local authority enforcement notice, such as tearing down the work that was done without planning; building regulation approval, or getting permission to do it again. 
• In some cases, the value of the property will go down. Even if planning permission wasn’t granted, a home would be sold; with two bedrooms instead of the four it had when it was bought. 
• The insurer agrees to pay for any other costs and expenses that they say they will pay for in writing.

Building Regulation Indemnity Policy Cost

As the value of the house and the work done changes, so does its price. Most insurance policies don’t cost more than a few hundred pounds.

It will be up to you and the other person in the house deal; or your lawyers to decide who pays for the policy. Sometimes, the buyers pay for the policy because they’ll benefit from it. Other times, the sellers pay because they don’t have building regulations paperwork; and buying the policy will allow the sale to move forward, so they pay. Many times the cost is split between the buyer and the person who is selling.

Because indemnity for building regulations only needs to be bought once, it doesn’t need to be bought again. The policy will usually stay in effect, with no expiration date. There’s a good chance that when the property is sold again; there will be a policy in place to cover the new owner.

Indemnity Insurance Policy For Building Regulation

When you’re selling your house or buying a new one, things like building regulations, indemnity insurance; and other essential tools tend to get pushed to the back of the line.

Legal indemnity insurance covers you when there isn’t enough evidence to show that building regulations have been met; for the following types of work done to a single residential and/or business property.

When making changes, or additions to a garage, as well as installing windows and doors; they can be covered if they were done at least three months before you started getting insurance.

At least four years before the policy starts paying for damage to the home. This could be when the home was built, turned into flats, or used for a different purpose.

In considering a building regulation indemnity insurance policy, people who are selling a house; should make sure that all the paperwork is in order before they sign it. If there is no certificate that proves that the building regulations have been approved; then the buyers’ solicitors would likely ask for an indemnity insurance policy to cover them in case something goes wrong.

Lack Of Building Regulation Indemnity Policy Cost

The cost of a lack of building regulation indemnity insurance policy is based on the value of the property; but for a home that costs $500,000, the insurance premium could start at $180 or so. People who buy a home can ask the seller to pay for the cost of this policy; even though it may seem small. 

Lack of Building Regulation Indemnity Insurance pays for the costs of getting rid of illegal building work; but does it make sense to ignore the other risks?

Can I sell my house without building regulations?

In this case, you can sell your house without having to get permission from the city for any work. It’s important for your buyer to get insurance if the seller does not get permission to build something. This is part of their responsibility to their mortgage lender. 

Can you get retrospective building regulations sign-off?

Yes, but you should be aware that the works might not be legal; the seller might have to take them down. It may also take a long time for retrospective building control approval; to come through for the project that was already done.

Who pays for an indemnity policy?

Often the buyer, but other times it’s both. It’s also a good idea, because insurance costs so little, that you should offer to pay for the policy yourself.

What does lack of building regulations indemnity policy cover?

In some cases, having no planning or building regulations approval can be quickly solved by taking out a special type of Legal Indemnity Insurance, like this one.

How do I get building regulations indemnity insurance?

There are some things you’ll need to do to get a quote for Building Regulation Indemnity Insurance. You’ll need to tell your insurance company who owns your house legally, where it is located, who your mortgage lender is, and how much it costs. In most cases, your lawyer would set up the insurance for you.