Indemnity Policy – Absence of Easement

What is an Indemnity Policy?

A policy under which the insurer agrees to indemnify (compensate) the insured against specified costs or losses which may be incurred in the future up to an agreed maximum.

When is an Indemnity Policy suitable?

Where you have no express right to use the roads and paths which provide access to the property and/or the service pipes, wires and cables which connect to the property (including the right to repair and maintain them).

However, you must have used the facilities throughout the past 12 months without obstruction, complaint or permission.

What cover does an Indemnity Policy provide?

Cover if an owner of the land over or through which the easement (i.e. right) is exercised, attempts to prevent use of the Easement by Court Order.

When Won’t I Be Covered?

  • If you do not use the property as a single residence.
  • You obstruct or fail to pay your proportion of the cost of maintaining the Easement and loss arises as a result.
  • You disclose the policy to any third parties other than prospective purchasers, lessees, their mortgagees and/or legal advisors.
  • A claim is caused wholly or partly by you.
  • Loss arises from a complaint made regarding the use of the easement of which you were aware of before the policy started.

When isn’t it suitable?

Where any of the below are involved:

  • Vehicular access over common land or town or village greens
  • There are changes in the use of the property after the start of the policy
  • Development risks i.e. plots upon which a residential or business property is going to be built/rebuilt
  • Properties in the course of construction
  • Newly-built properties which have not been occupied for at least 12 months
  • There has been a change of use to the property carried out within the last 12 months

For further advice on the above topics, please contact us.