House Sale - Indemnity Insurance

[Yodel]

Mr Yodel and I recently bought a house in which the living/dining rooms had been knocked-through in the 1970's. Our solicitor insisted on the vendor obtaining indemnity insurance to cover the lack of building regulations approval, even though the work was carried out before building regs came into force in 1984. Does this mean that when we sell the house we'll have to get indemnity insurance, and any future owners into infinity....? I can see this being a real money-spinner for insurance companies, especially with the advent of the Home Information Pack. Will we all have to take out an indemnity for any bit of work carried out in our houses since the year dot?

[stanleyman]

The world has gone mad, we'll be needing building regs and planning for all old buildings and all work next. Your best bet would have been to get the local building inspector in to check it out and if necessary retro approve it. Who was the daft begger who pointed it out?

[Yodel]

Thanks stanleyman, it was the backside-covering surveyor who did the mortgage valuation survey. I would have thought the fact that the house was still standing 30-odd years after the removal of the wall would be evidence enough....but there you go, no-one wants to take responsibility for anything anymore.

[Farmie]

No don't go to the local building inspector as if you alert the local authority to a potential problem you can compromise your ability to get indemnity insurance cover. I believe such cover will last indefinitely and costs like something between �60 and �200.

Normally there is a restriction on the time period (12 months) in which the local authority can force you to make changes to a construction which wasn't built with reference to Building Regs.

This is not an uncommon situation although I've not come across case where they are quibbling over work which was done so long ago!

[Yodel]

Thanks Farmie. Do you happen to know if an indemnity policy always relates to a specific piece of work, or can you take out a policy to cover you for all works undertaken in the house?

[themas]

The policy is almost certain to cover just the specific piece of work, but it should last indefinitely so you should not have to buy a new one when you sell.

Didn't your solicitor give you a copy of the policy? If not, ask for one - you are entitled to see it. The original should be kept with the other title deeds, but make sure you keep the copy you get in case the original gets lost.

[Yodel]

Thanks for the advice. Will get on to my solicitor pronto.

[robster28]

hi similar prob myself but with a loft extension done in the early 80s we think. gettin really worried about futher delays to our move an a friend of ours reckons the vendors may have to bring the extention up to current regs to even get the insurance as its hard to get anybody know if thats the case help please should be movin today already delayed till may now this don't think i can take much more .ta