What indemnity insurance does
A legal indemnity policy sets out the risk insured, who benefits, the financial limit, exclusions and conditions. The GCS building-regulations specimen, for example, covers specified loss arising from enforcement, including certain authority-required alterations, reduced property value and authorised legal costs. It is an example of policy wording, not a recommendation of that provider. [1]
It does not inspect the building or issue approval. GCS’s separate product information expressly excludes ordinary repair costs where there are no formal enforcement proceedings. A buyer concerned about an inadequately supported wall therefore needs a structural assessment, not merely an insurance quotation. [3][4]
Planning and building-regulations defects also need to be identified separately. GCS publishes a combined policy as a distinct product. Do not assume that a policy described only as “building regulations insurance” includes every planning, title or sewer issue. [5]
What regularisation does
For ordinary domestic projects, local-authority regularisation allows eligible work undertaken without building-control approval to be assessed retrospectively. The process may require parts of the construction to be exposed, evidence supplied and defects corrected. The council cannot promise approval simply because an application and fee have been received. [2][6]
The statutory process concerns compliance with the building regulations applicable when the work was carried out. A regularisation certificate is evidence, but not conclusive evidence, of compliance with the relevant requirements specified in it. It is not planning permission or a whole-property condition warranty. [7]
Why the order of enquiries matters
Discuss the issue with the conveyancer before making discretionary approaches to the council where insurance is an option. Some wording restricts cover after the insured contacts the authority or seeks regularisation. Existing correspondence, intended works and known problems must be disclosed accurately to the insurer. Never conceal a fact to obtain a policy. [1][3]
That sequencing is not a reason to ignore a suspected dangerous structure. Where there is a safety concern, obtain appropriate technical advice and act on urgent risks rather than delaying solely to preserve an insurance possibility. Redbridge identifies inadequate chimney support and failures of structural support among dangerous-building concerns. [8]
A practical comparison for the transaction
Ask the advisers to answer four questions:
- What precisely is missing: a copy, completion of an existing process, planning permission or building-regulations approval? [9][2]
- What evidence exists about the physical condition, and what remains concealed or untested? [10]
- Would the proposed insurance actually cover the identified risk and intended use? [5]
- What evidence will this buyer and lender accept? [11]
Compare the complete cost of each route, not just a premium against an application fee. Regularisation can involve surveys, drawings, opening up, remedial construction and making good. Insurance leaves any uninsured physical problem to be dealt with separately. [12][3]
The conveyancer should advise on the legal and insurance choice, with technical advice supplied separately.