• Can I Take Out Indemnity Insurance For A Conservatory That I Plan To Add, Against A Restrictive Convenant? I Don't Want To Wait Until I Come To Sell The Property.

    By Guest on 22nd Dec 2023

    The bungalow is 17yrs old,I have an indemnity policy from when I bought the property in 2018, but that only covers breaches from when I purchased it. I'd appreciate any advice you can give me

  • 3 Answers

    By Guest on 24/12/2023

    Hi,

    There are a couple of issues to consider here:

    1. Indemnity insurers can only sell these policies to conveyancers, not to the general public, so that you would need to pay a solicitor to arrange the policy. Aside from the cost, you might struggle to find someone willing to do it, as it's outside of their usual retainer scope;
    2. The standard self issue policies rely on the breach having already occurred, usually at least 12 months prior to the inception of the policy. If the breach has happened, there has been enough for an objector to come forward and there has bene no objection the risk is much lower. For that reason the policies are quite cheap. You are planning to obtain cover against an intended breach (or at least before anyone who might object has had a chance to do so). Such cover is sometimes available but not always and where it is, is likely to be substantially more expensive.

    It's your decision of course but if you are worried there is a realistic prospect of someone who is entitled to the benefit of the restriction making an objection you should consider negotiating with that person prior to doing the work, bearing in mind that indemnity insurance cannot prevent the objector obtaining an injunction to for example for you to remove the conservatory, it can only compensate you for any resulting financial loss.

  • By Guest on 25/12/2023

    Thank you

  • By Guest on 25/12/2023

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