A covenant is an agreement between two or more people, entered in writing, whereby either party states the truth on certain facts, or promises to perform or give something to the other, or refrain from doing something.

Restrictive Covenant Indemnity Insurance provides cover for breaches of known or unknown restrictive covenants where a freehold property is (or could be) affected by restrictive covenants should anyone challenge those covenants.

For instance, a restrictive covenant may be put in place to prevent a property having additional dwellings or extensions built on the land – or restrict the property to a specific use.

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Who is a Restrictive Covenants Insurance policy for?

Policies are taken out by Property Developers as well as those buying or selling domestic property.

It provides protection against costs and expenses of rectifying the legal issue, damages awarded against you by a court, reduction in the market value of the property and other expenses (discretion of the insurer), up to the policy limit.

How quickly can I get a policy?

In most cases, policy quotations can be obtained from insurers within 2-3 days, although we have seen them turned around in 24 hours.

For example, Mr James recently approached One Indemnity about a Restrictive Covenant Indemnity policy. He wanted to add a second dwelling but a covenant on the title stated only a single dwelling could stand on that piece of land.

After providing One Indemnity with the title documents, the covenant was quickly identified and quotation was sourced, which was presented to the client within 24 hours. The policy protects Mr James in the event that a third party challenges the title covenant in the future.