The process of embarking on a new property development project can be an expensive one, involving investors and consultants before planning permission is granted. Aborted Planning Costs Indemnity Insurance provides financial protection, covering most costs incurred in the event that planning permission is denied.
- Financial protection
- Policies tailored to specific developments
- Quotations within 7 days
- A wide range of planning costs covered
- Reassurance for investors, resulting in increased funding opportunities
Why choose One Broker for Planning Costs Insurance?
We have worked with property developers for many years and understand the challenges you face, especially in the early stages of a development project.
We know it can be difficult to secure the funding you need and maintain equity in your development before planning permission is approved. That’s why Aborted Planning Costs Insurance is a vital consideration.
It will help you to overcome those initial challenges, making the prospect of investment more appealing and secure. It covers any sunk costs if the local authority denies permission, ensuring you and your investors have peace of mind.
What are the limits of indemnity?
It ranges from £50,000 to £1,500,000 per policy.
How much is Planning Costs Insurance?
As a guide, it can cost between 9-21% of the limit of indemnity, typically around 15%. Get in touch for a quotation today.
Who benefits from Planning Costs Indemnity Insurance?
The policy is designed for property developers. It allows them to negotiate with investors early in the property development process, retain more equity and start building faster. It gives investors confidence, knowing the planning risk costs are covered.
Which costs are covered?
A wide range of different costs related to preparing and submitting a planning application, including:
- Consultants – Planning, Highways, Acoustic, Land Contamination, Environment
- Flood risk engineers
- Costs relating to accountants, utility services, appeals
- Judicial Review
Will a policy cover multiple planning permission bids on the same development?
No. It’s important to note that the policy only covers one planning application. If this application fails at appeal, a new application will have to be lodged with its own indemnity policy.
How does a Planning Costs policy work?
Each policy is tied to a planning application for an insured project. Insurers review each project on receipt of supporting documentation, in order to ascertain its scope according to project viability and the client’s demands and needs.
Once the policy is in place, the insured can pursue a planning application until one of the following occurs:
- The planning application is granted
- An adverse decision; or
- An insurer decision.
Abandoning, withdrawing or discontinuing the planning application prior to the above will trigger the end of the policy and losses will not be payable.
An adverse decision
This is a refusal of the planning application by the planning inspectorate at appeal. Following an adverse decision, the insured will be entitled to claim for loss under the policy.
An insurer decision
Insurers will appoint a team to monitor the planning application on its behalf. The insured and their advisors are obliged to keep the insurer’s team updated on the progress of the planning application. Any material changes that may influence the prospects of success of the planning application must be reported.
If a project ceases to have prospects of success, the insurer is entitled to make an insurer decision. An insurer decision defines the insurer’s liability for loss at the date that the insurer decision is made.
For instance, if the insured withdraws the planning application following an insurer decision, the insured is entitled to claim for loss under the policy. The insured may continue with the planning application after an insurer decision but will not be able to make a claim for loss under the policy until a decision has been made at appeal or the planning application is otherwise withdrawn. In any event, the insurer’s liability for loss will not exceed that calculated at the date of the insurer decision.
The insured must comply with all requests made by the insurer with the intention of preventing an adverse decision while maintaining prospects of success. Following an adverse decision, the insured must cooperate with the insurer in submitting an amended planning application (if required).