Restrictive Covenant Insurance is a specialised policy designed to protect property owners and developers against financial losses arising from breaches of restrictive covenants. These covenants are legal obligations imposed on a property, restricting how the land or buildings can be used. If a restrictive covenant is breached, it can lead to legal action, fines, or even the reversal of development work. Becks Insurance Brokers in Brighton offer tailored Restrictive Covenant Insurance solutions, ensuring that your property investment or development project is fully protected against these risks.

Comprehensive Protection Against Restrictive Covenant Risks

Restrictive covenants can pose significant risks to property owners, developers, and investors. These covenants, often attached to land deeds, can restrict activities such as building extensions, altering structures, or changing the use of the land. If these restrictions are unknowingly breached, it can result in costly legal disputes, delays, or the need to undo work. Restrictive Covenant Insurance provides peace of mind by covering the legal costs and financial consequences of such breaches, ensuring that your project can proceed without disruption.

Features and Benefits

• Legal Defence Costs: Covers the legal expenses involved in defending against claims arising from an alleged breach of a restrictive covenant, ensuring that you have access to expert legal representation.

• Financial Compensation: Provides coverage for any financial loss suffered as a result of a successful claim against your property for breaching a restrictive covenant.

• Property Value Protection: Ensures that the value of your property or development is protected, even if a covenant is breached, by covering the cost of any required remedial actions.

• Delay Coverage: Covers the financial impact of project delays caused by covenant-related legal disputes, helping to mitigate losses during the resolution process.

• No-Fault Coverage: Provides protection even if the breach occurred before you acquired the property, ensuring that you are not penalised for actions taken by previous owners.

• Peace of Mind for Buyers: Offers reassurance to potential buyers or investors, as the insurance can be transferred with the property, protecting future owners against covenant breaches.

What is Typically Covered?

Restrictive Covenant Insurance typically provides coverage for a broad range of risks associated with restrictive covenants on a property. Typical cover might include:

• Legal Defence: Covers legal costs for defending against claims that a restrictive covenant has been breached.

• Compensation Payments: Provides cover for any compensation that must be paid to third parties as a result of breaching a restrictive covenant.

• Remedial Works: Covers the costs of any work required to remedy a breach, such as reversing unauthorised alterations or restoring property to its original state.

• Loss of Development Value: Protects against the loss in value of a development if a restrictive covenant prevents the intended use or completion of the project.

• Delays and Associated Costs: Covers financial losses related to project delays caused by restrictive covenant disputes.

Exclusions might include intentional breaches of covenants known before the policy was taken out, or failure to follow legal advice regarding the covenants. The specific terms and conditions will vary depending on your property’s circumstances and the insurer. Becks Insurance Brokers will work with you to tailor your Restrictive Covenant Insurance policy, ensuring comprehensive protection that aligns with your property or development needs.

To protect your property investment or development project against the risks associated with restrictive covenants, book an appointment with one of our specialists here or arrange a quotation here.