Whether you are a property owner or a property developer, it’s important to understand what Right of Light Insurance is and why you might need it. This type of insurance protects business owners and homeowners from losing their right of light as well as from claims made by others who allege that their right to light has been infringed upon. In this article, we will explore what Right of Light Insurance is and how it can protect you from costly legal disputes.
What is Right of Light Insurance?
Insurance is a contract between two parties in which one agrees to pay the other for financial losses incurred as a result of specific perils. Homeowners insurance, for example, protects against loss due to fire, theft, or weather damage. Right to light insurance cover is similar in that it protects against loss due to obstruction of natural light.
Right of Light is a legal term that refers to an individual’s right to have light reach their property. This right can come from either the sun or the moon, and it is based on the principle that everyone has a right to enjoy natural light.
What it covers
Right of light insurance provides cover against loss or damage to property caused by obstruction of light. This can include anything from a building being constructed that blocks out sunlight to a tree growing in front of a window.
It is usually taken out to protect against loss of light or views as a result of changes to a property nearby. It is typically needed when there is a change of use on a neighbouring property, such as the construction of a new building, which could block out sunlight or views.
Why Property Owners Might Need it
Right of light insurance is important for property owners because it can help to cover the cost of repairs or replacement if something does happen to obstruct the light coming into your home or business. Without right to light insurance policies, owners would be left exposed to the risk of their property becoming darker or having its land value lowered. In some cases, this could even make it difficult to sell the property.
Right of light cover provides peace of mind and protection against these risks, ensuring that owners can enjoy their property without worry.
This type of insurance is also particularly important for businesses that rely on sunlight for operations, such as greenhouses or solar panel manufacturers. In the event that someone else builds a structure that blocks sunlight from reaching a business property, the business can file a claim with their right of light insurer to recoup lost profits. While the cost of right of light cover may seem like an unnecessary expense, it can provide peace of mind and financial protection in the event that a business’s operations are disrupted by a loss of light.
In some cases, it can even help to cover legal costs involved if you need to take someone to court over an obstruction. While it is not required by law, it is always a good idea to have right of light cover in place just in case something does happen.
Why Property Developers Might Need it
When it comes to property development, maximising the space available is crucial in order to maximise profits. This often means extending existing buildings or undertaking major building projects.
When it comes to maximising space, there are a few different approaches you can take. You may want to build upwards, with a loft extension or extra floors on an apartment block. Alternatively, you may want to extend outwards, with a ground floor and second floor house extension. Or, you may want to do as much as you can outside to create the maximum space for living or working inside the building.
Before beginning any work, you already know that it is essential to obtain planning permission from the local authorities. However, if your development project could potentially block out sunlight from a neighbouring property, you may additionally need to take out right of light cover.
Right of light issues for property developers
This type of insurance protects you against any legal action that may be taken by a neighbour if your development does indeed block out their sunlight. Without taking these precautions, you could end up with delays and additional costs further down the line.
Right to light means that properties over twenty years old, adjacent to or close to your construction, have a right to maintain an adequate level of illumination through their windows. They have the right to the comfortable enjoyment of the areas and rooms of their property receiving that light.
If a property owner feels that their right to light is being infringed upon, they can take legal action. This can be a costly and time-consuming process, and it can potentially disrupt or even halt a development project.
If your project’s scope reduces the light coming into their property, the owner may be able to prevent that part of your development proceeding. Or, if the structure has already been built, you could have to demolish and rebuild it, so it no longer affects their right to light.
As a result, it is important for developers to be aware of the potential for claims regarding right of light and to take steps to avoid them.
Minimising your risk
One way to do this is to ensure that any new buildings are designed in a way that minimises the impact on the rights of other property owners.
Developers should also consult with an expert on Right of Light law before commencing any construction project.
For any property developer, the potential for Rights of Light claims is a serious concern. If a claim is successful, it can interrupt or even stop a development project, causing financial ruin and damaging your reputation. The case law surrounding Rights of Light is constantly changing, making it difficult to predict whether or not a claim will be successful.
There are some steps you can take to minimise the risk of a claim:
- Thoroughly investigate the Right of Light aspects of your build prior to starting construction.
- Carry out a survey to determine whether there are any existing rights of light on the property.
- Speak to the appropriate owners of neighbouring buildings regarding the issue beforehand to assess the likelihood of any contention and reach an agreement.
What to do in the event of a claim
Even with these precautions, there is still the risk that neighbours will only file a claim further down the road, once they’ve become more aware of how a project will affect their right to light.
If a claim is made, you should seek legal advice as soon as possible. With experienced solicitors on your side, you stand a much better chance of successfully defending your development project.
Taking out Right of Light cover will also help in this regard, giving you the peace of mind to continue with your project without the fear that it will be delayed or permanently halted. Having this cover in place will ensure that your business is covered for any eventuality and will not be ruined in the process.
Some of the issues a policy can cover you for as a developer are:
- Legal costs involved and compensation claims.
- Additional cost of corrective works to your development.
- The cost of aborting your project.
- The cost of demolishing your construction.
- The reduction in market value of your development.
- The settlement of a claim against you.
Choosing Right of Light Insurance
There are several considerations to take into account when taking out Right of Light cover, whether you are a property owner at risk of loss of light, or a developer who needs cover against the risk of being sued for obstructing a neighbouring property’s light.
Property Owners
As a property owner, what should you consider when taking out right of light cover?
Firstly, it’s important to understand what right to light is and how it’s protected under the law. Right to light is the legal right of a property owner to receive light from their windows. This right is usually protected by an easement, which is a legal agreement between two properties. If your property is subject to an easement, you may need to take out right of light cover in order to protect your investment.
A right to light insurance policy can cover the cost of repairing or replacing windows that are blocked by another property. It can also cover the cost of lost rental income if your property is unable to be used due to lack of light.
There are a few things to keep in mind when taking out right of light cover:
- Make sure to get quotes from multiple insurers so you can compare rates.
- Be sure to read the policy carefully so you understand what is and is not covered.
- Remember that right of light cover is an important way to protect your property investment, so make sure you have the coverage you need. Consult with an expert who can advise you on the best policy for your needs.
Property Developers
Right of Light cover is an important part of your risk management strategy as a property developer. Potential Rights of Light claims aren’t something you can ignore. With the case law surrounding Rights of Light continually changing, if you aren’t adequately protected, a project could be permanently halted by a claim, ruining your finances and destroying your valuable reputation.
Here are a few considerations to take into account when it comes to taking out Right of Light cover for your business:
- In order to make sure you and your project are protected from punitive damages, you need a policy that’s tailor-made to the specifications of your build.
- You should also check whether the policy provides cover in perpetuity. This means it will benefit successive owners of the property and their mortgagees when the property is sold on.
- Make sure that the broker you are dealing with has specific expertise regarding Right of Light cover as it is a specialised area.
At Construction Insure, we can discuss your needs and provide impartial advice together with a no obligation quotation. As we are independent, we can offer the best solutions on the market and because we make the effort to get to know our clients and their needs, your policy will be tailor made to your requirements.
Our mission is to provide the right insurance policy to protect developers and contractors like you and we’ve been doing it for forty years, so you can be sure you will get the cover you need. Get in touch with us today.