Legal Indemnities
Legal Indemnity Insurance transfers the risks faced by property purchasers or their lenders for most of the title or covenant problems encountered by conveyancers, to which there is no readily available solution. The policy coverage usually benefits the purchasers of a property and their successors in title to the property or any part or parts thereof (including mortgagees and leasees).
We understand that the service response time for this class of insurance is vital and as such we have established systems to ensure that quotations including draft schedules & wordings are returned within 24 hours of application and policies are issued within 72 hours following instructions.
As Legal Indemnity policies are written on a perpetual basis, to counter the effects of inflation, we recommend that an escalator clause is incorporated within the wording that has the effect of increasing the indemnity limit by 10% per annum for usually the first 10 years. In addition, providing that there has been no deterioration of the risk, at a later date increases to the indemnity limit can be effected by way of endorsement and on payment of an additional premium.
The sorts of problems that can be insured include:
Restrictive Covenants
- existing breaches of restrictive covenants
- proposed breach of restrictive covenants
Providing cover for capital loss, damages and expenses arising from the enforcement or attempted enforcement of restrictive covenants.
Defective Title
- missing beneficiary
- deeds of gift or transfer at undervalue (Article 17, Bankruptcy (Desástre) (Jersey) Law 1990)
- easements (absence and enforcement of rights of way, drainage, etc.)
Providing cover for capital loss, damages and expenses should any estate, right or interest adverse to or in derogation of a policyholders title be established as a result of a specified defect in title.
To arrange cover, underwriters require certain information as highlighted under the Legal Indemnity Checklist section.
For more information, assistance or a quotation, please either contact us, complete an enquiry form or use the online phone me request.