Planning Permission Indemnity Insurance - A Comprehensive Guide
When it comes to buying a property, there are many things to consider. One of the most important is planning permission indemnity insurance. This type of insurance is designed to protect buyers if their property purchase is found to have been in breach of planning laws or regulations. It can also provide cover for any costs associated with having to rectify the problem. In this guide, we’ll take a look at what planning permission indemnity insurance is, how it works, and why it might be necessary for a property purchase.
What Is Planning Permission Indemnity Insurance?
Planning permission indemnity insurance is a type of insurance policy which provides protection to property buyers if their purchase is found to be in breach of local planning laws or regulations. It will cover any costs associated with the rectification of the problem, such as the cost of obtaining planning permission, or the cost of any additional works required to bring the property into compliance with planning laws. It is usually taken out when a property is being purchased.
How Does Planning Permission Indemnity Insurance Work?
Planning permission indemnity insurance works by providing cover for the costs of any rectification work which may need to be undertaken in order to comply with planning laws or regulations. The insurer will usually provide a fixed sum of money to cover the costs of any necessary works which may need to be carried out. This money can then be used to pay for any necessary works which may be required to bring the property into compliance with planning laws. The insurance policy will also provide cover for any legal costs which may be incurred in the event of a dispute.
When Is Planning Permission Indemnity Insurance Necessary?
If a property is being purchased, it is important to ensure that all necessary planning permissions have been obtained. In some cases, a property may have been built without the necessary planning permission, or the planning permission may have expired. In these cases, it is important to take out planning permission indemnity insurance in order to protect the buyer from any potential problems which may arise from the lack of planning permission. Additionally, if the property is being built on land which is subject to an agricultural tenancy, a planning permission indemnity insurance policy may be necessary.
What Is Covered By Planning Permission Indemnity Insurance?
Planning permission indemnity insurance will cover the costs of any rectification work which may need to be undertaken in order to comply with planning laws or regulations. This includes the cost of obtaining any necessary planning permission, as well as the cost of any additional works which may be required to bring the property into compliance with planning laws. The insurance policy will also provide cover for any legal costs which may be incurred in the event of a dispute.
What Are the Benefits of Planning Permission Indemnity Insurance?
The main benefit of taking out planning permission indemnity insurance is that it can provide peace of mind when purchasing a property. It can provide cover for any costs which may be incurred in rectifying any problems which may arise from the lack of planning permission. Additionally, it can provide cover for any legal costs which may be incurred in the event of a dispute. This can help to ensure that the purchase of a property is a smooth and stress-free process.
What Is the Cost of Planning Permission Indemnity Insurance?
The cost of planning permission indemnity insurance will vary depending on the property being purchased. Generally, the cost of the policy will be determined by the size of the property and its location. The cost of the policy will also depend on the type of cover which is required. Generally, the cost of the policy is relatively low, and it can be a worthwhile investment for those purchasing a property.
Conclusion
Planning permission indemnity insurance is an important type of insurance which can provide protection to property buyers if their purchase is found to be in breach of planning laws or regulations. It can provide cover for any costs associated with the rectification of the problem, as well as any legal costs which may be incurred in the event of a dispute. The cost of the policy will vary depending on the property being purchased, but it can be a worthwhile investment for those buying a property.