Security for Expenses (Party Wall) Insurance
A new and cost-effective solution for Building Owners that will allow them to meet requests for security from Adjoining Owners under Section 12 of the Party Wall etc. Act 1996 (‘the Act’), without tying up large sums of money in escrow.
This innovative insurance solution has been designed with ‘the Act’ in mind
and helps avoid delays that can be caused by a traditional insurance
How does it work?
There are three key things to consider:
- Is there unrepaired damaged or abandonment of works in respect of the Party Wall?
- Have two of either the Building Owner’s Surveyor, Adjoining Owner’s Surveyor or the Third Surveyor* agreed an award under section 10 (10) or section 10 (11) of ‘the Act’
- Have 14 days passed since the award was made without appeal?
If the answers to all three questions above are ‘yes’, then the insurer will release funds to the Adjoining Owner to help cover the costs of repairs or making the property safe and secure**
Losses under the policy include:
- The cost of remediation of the property following Damage and / or Abandonment
- Reasonable costs and expenses that you may incur in respect of removal, storage and alternative accommodation whilst the property is uninhabitable, for up to 26 weeks
- Reasonable costs and expenses that you incur in respect of:
- Removal of debris
- Dismantling or demolishing
- Shoring up
- Turning temporary works permanent
- Making the property safe and secure
- Other costs and expenses (including legal defence costs) that you incur, with the prior written consent of the insurer.
Full policy terms and conditions, including any warranties, exclusions and/or endorsements are available on request.
*All Surveyors must have a minimum of 5 years’ experience and carry at least £1m professional indemnity insurance cover
**Subject to full terms and conditions of the policy