Legal Indemnity Insurance is a procedure which has the ability to protect you if there is ever any action taken against you with regards to a legal defect. An example of a legal defect could include the absence of planning permission for a patch of land or a restricted agreement that might limit any work being carried out on a property.
Do You Need Legal Indemnity Insurance?
Existing issues always need to be considered when it comes to insuring a property. You also need to factor in safeguarding against possible issues in the near or distant future. If there is a legal defect, it might not be an option to wait for this to be resolved. This means that you need to ensure your build or transaction can still progress to your original cost and timing. This is where Legal Indemnity Insurance comes into play. This policy can be used in conveyancing or property transaction where there is an existing defect. Whether there is a lack of planning permission or absence of building regulations approval, they can all be described as defects. They can often not be resolved at all, which is why the insurance is often needed.
You don’t want to face ongoing legal battles when it comes to your building plans so it is important to seek out the right kind of protection right now. There are many different policies to cover specific risks, but your main goal is to seek advice from a professional so that you are financially and legally protected. There are many factors which could cause you to come under fire. You don’t want to be left open to repercussions that could be extremely expensive and time consuming for you.
For example, if your house extension was unauthorised, the Local Authority could demand the removal of that addition to the property. This would mean you have to return the house to its original state before the extension was put into place. If you had a Legal Indemnity Policy this would protect you financially from any remedial work, if that order was enforced. In addition, all of your legal costs would also be covered, which would help to make up for any loss of value to the building in question.
As the insured party you would need to observe particular conditions to make sure your policy does not become invalid. First of all, you should always be taking reasonable steps to avoid the chance of a claim. This means you need to keep the policy confidential. If a third party were to become aware of the insurance they would be able to take action against you as soon as they were notified. The unauthorised disclosure would then invalidate your policy. There may be other conditions to adhere to as well, such as ensuring the property has been occupied for a year.
If you think you could benefit from Legal Indemnity Insurance, then be sure to contact our expert team today. We will be able to provide you with the best possible cover, at the best premium so that you can continue with your purchase or build right away.