Building Regulations Indemnity Insurance Explained

Building regulations indemnity insurance covers the cost if the council takes enforcement action over work that was not approved. That could include the cost of altering or removing the work.

It is usually a one-off payment, often made by the seller. The policy then protects the buyer, and future owners, for the work named in it.

• It does not make the work safe or compliant.
• It does not pay to fix defects in the work itself.
• It does not cover injury or damage caused by the work.
• It usually does not apply if the council has already been contacted about the work.

Most policies become unavailable, or invalid, once anyone has told the council about the work. That is why conveyancers often advise against contacting building control while a policy is being considered.

Regularisation, explained in No Building Regulations Sign-Off for Work on Your Home?, is the alternative that deals with the work itself.

For work where safety matters, such as structural changes, electrics or gas, a buyer may prefer evidence that the work is sound. A survey or inspection may be more useful than a policy.

Some mortgage lenders also have their own views. Your conveyancer will know what the buyer's lender will accept.

Indemnity insurance is usually needed because a certificate was lost or never issued. Recording each job on Propvio, with its certificate attached, reduces that risk for your next sale.