Rights of Light
Right of Light insurance policies are available for your developer clients to protect them from the risk of a possible future claim in respect of an infringement of a neighbour's Right of Light.
Recent cases such as HKRUK II v Heaney (2010) have highlighted the legal system's increasing willingness to award an injunction against the developer rather than simply compensating the injured parties. The costs of compensation/damages can be significant, often being based on up to 30% of developer's profit, but this is still significantly less than the cost of an injunction requiring the demolition of the offending part of the development, possibly following completion and occupation.
As a consequence, in order to allow a development to proceed without the delay of awaiting the conclusion of Right of Light matters, a developer can take out an insurance policy to protect themselves from the range of potential costs and diminution in value associated with a legal claim and any consequences of its outcome.
Your clients have a choice when dealing with Right of Light issues and Rights of Light insurance has quickly become an important part of the strategy.
Rights of Light Insurance supplements (rather than replaces) the expert surveyor's input by enabling an appropriate right of light strategy and transfers the residual financial risk to the insurer's balance sheet. The extent of coverage will vary from insurer to insurer. Our own policies provide two forms of protection: firstly, we will pay all legal costs involved in addressing claims against our insured developer; secondly, we will typically insure any combination of the cost of any settlements, damages award or abortive costs incurred as a result of a third party claim or loss in land value in the event the developer's desired project is permanently halted by the Court.
What we require
What now
To discuss your requirements further please contact us:
- email Dave Woolley- dwoolley@firsttitle.eu
- email the commercial team- comm.team@firsttitle.eu
- fax- 0870 389 9980 before 12pm and we'll reply the same day
- phone- 0207 832 3100 and speak to a legally-qualified underwriter
Knowledge base
Further Information and case studies:
- HKRUK II v Heaney (2010) - Kevin Mills summary... Read article
- Rights of Light – dark days ahead for developers?... Read Article
- Rights of Light... Read More
- Commercial Title Insurance... Read Brochure
- Defective Title Insurance for Property Developers... Read Article
- Insurance In Property Development... Read Article
- How we are Different... Read Brochure
- Small Guide to title insurance... Read Brochure
- Working with First Title... Read Brochure
- Portfolio Case Study... Solution
- Highways Case Study... Solution