August 2010 claims chronicles

August 2010 claims chronicles

We pride ourselves on our reputation for delivering an excellent claims handling service and we want to be judged on the service that we provide - we consider this to be the fulfilment of the promise we made when you took out the policy with us.

Please find below a collection of recent claims we have received and details on how we resolved them.

Building regulations

First Title insured the fact that additions had been made to a residential property without formal building regulation approval.

Three weeks after inception of the policy, the local authority surveyor attended the property and requested that remedial works be undertaken in order for the property to comply with regulations.

First Title paid for a surveyor to attend the property and review its condition, and met the cost of the required remedial works.

Settlement: £11,975

Expenses: £529 

Access

The insured was contacted by the owner of the accessway, objecting to the insured's use of the accessway to access the property and to carry out renovation works. However, he indicated that he would be willing to enter into an agreement to grant a Right of Way. The insured property, which was for residential use, was a listed building and was worth approximately £11,000,000 undeveloped.

Following a site visit by a member of First Title's claims team, it transpired that there were other issues between the parties and the insured was keen to resolve them amicably on a personal level. First Title explained to the insured that he was welcome to negotiate on other points at his leisure, however we needed to be kept up to date on the position in respect of access and would need to agree any settlement.

Settlement on the access point was reached, with the insured making a payment from his own pocket to the other side in respect of the non-insured matters.

First Title contributed towards the insured's and the other side's costs.

Settlement : £8,000

Expenses :  £21,600 

Boundary dispute

The insured took out a First Title policy to cover a driveway shared with the adjoining property when she purchased the house. Despite raising no previous objections, the adjoining property owners later claimed that part of the insured's property was in fact on their Title, as a result of the boundary being incorrectly marked out, and were threatening to block this area. This would have meant that the insured would have been unable to access the childcare business now located at the rear of the property.

After surveys, valuations and negotiations, a transfer of the land occupied (but not owned by the insured) was agreed and registered.

The Policy not only resolved the issues with no cost to the insured, but also allowed the original insured to sell the property, whilst the claim was ongoing, with the successor in title being re-assured that the policy was in place and that First Title was dealing with the claim.

Settlement: £12,700

Expenses: £8,200 

Drainage

Cover was provided for any prevention of drainage from the insured property over adjoining land. The owner of the adjoining land raised concerns about the planned drainage.

First Title entered into negotiation with the adjoining owner and a financial settlement was reached. Payment was made and they entered into a deed of easement with the insured to allow the planned drainage.

First Title paid for the drafting and registration of the deed.

The whole matter was resolved within 4 months.

Settlement:  £3,000

Expenses:  £760 

Leasehold covenant

Cover was provided against the enforcement of a leasehold covenant, which precluded further development of the property.  The insured was a property developer who intended to develop up to nine residential dwellings on the insured land.

The freeholder's agent wrote to the insured to advise that the works would be in breach of the covenant and to propose its release for a fee.  They indicated that they would accept £6,000 to release the covenant

Settlement £ 6,000

Expenses £ 2,767

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