Absence of Easement Indemnity Policy

Background:

As part of the legal title to a property, there should be a full description of all of the Rights of Way, rights of services etc. that the property enjoys. Sometimes these are missing or not properly described and sometimes even though they did not exist when the property was first built; the rights have built over time through continued use (sometimes called prescriptive rights). Generally described as Absence of Easement, these can usually be insured very cost-effectively. Rather than complex and time-consuming negotiations with third parties in an attempt to rectify the position an insurance policy is often available.

To mitigate the risks associated with an absence of easement, easement legal indemnity insurance becomes a critical safeguard. This type of insurance policy is designed to protect the owner of a property from potential legal costs and claims that may arise due to the lack of a formal easement agreement for access or services from a neighboring property. Easement indemnity insurance policy offers peace of mind by covering the financial implications of easement disputes, including legal defense costs and compensation for loss of value to the property. It ensures that the owner’s legal right to access essential services, like water and electricity, is financially protected . By securing easement indemnity insurance, property owners can effectively manage easement risks, safeguarding their investment and avoiding the potential for costly litigation. This proactive approach allows for a smoother resolution to any disputes over rights of way or service access, ensuring that both the property and its owner are shielded from unforeseen legal challenges.

In what circumstances is the product needed?

Where a property lacks a legal easement in respect of:

• Vehicular &/or pedestrian access to & from it, or
• Use of services (including access for maintenance/repair) connecting to and serving it

This can be in respect of the continuing use of a property or where a change of use or development is intended

Product features:

Risks Covered: Damages/compensation awarded to a claimant, the adverse difference in market value, out of court settlements (subject to the agreement of the Insurer), cost of obtaining a legal easement in respect of the access/ services.

FAQs

1. What is an Absence of Easement Indemnity Policy and when is it needed?

An Absence of Easement Indemnity Policy protects property owners against losses or compensation claims arising from a lack of legal easement for access or use of services. This policy is crucial when a property lacks formal vehicular and/or pedestrian access, or when services such as water, electricity, or maintenance access serving the property are not legally established. It’s particularly necessary for properties undergoing a change of use or development that requires planning permission, ensuring easement risks are covered.

2. What risks are covered under an Easement Insurance Policy?

Easement Insurance covers a range of risks, including damages or compensation awarded to a claimant, the adverse difference in market value due to easement issues, out-of-court settlements (with insurer agreement), and the costs associated with obtaining a legal easement. This comprehensive coverage ensures property owners are protected against the financial implications of easement disputes and planning permission challenges.

3. How can property owners protect themselves from easement risks and potential legal costs?

 Property owners can safeguard against easement risks and potential legal costs by securing an Absence of Easement Indemnity Policy. This policy provides financial protection against claims related to the lack of a legal right for access or use of services, covering legal costs and compensation. It’s an essential measure for any property lacking clear easement rights, especially before undertaking any development that alters the use of the property.

These FAQs detail the significance of securing an Absence of Easement Indemnity Policy, emphasizing its role in mitigating easement risks through easement insurance. This easement policy is essential for covering potential legal costs and guaranteeing that property owners adhere to planning permissions, safeguarding their rights and investments effectively.