Q&As

A 'pre-planning' restrictive covenant indemnity insurance policy protecting against a proposed residential development of a site, which is historically restricted in the deeds, has been obtained. Is it the case that the policy will be cancelled on a planning application being made, or in the event of notification of an objection to the development during the planning process?

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Produced in partnership with Katrina Mather of Hardwicke Chambers
Published on LexisPSL on 01/07/2016

The following Property Q&A Produced in partnership with Katrina Mather of Hardwicke Chambers provides comprehensive and up to date legal information covering:

  • A 'pre-planning' restrictive covenant indemnity insurance policy protecting against a proposed residential development of a site, which is historically restricted in the deeds, has been obtained. Is it the case that the policy will be cancelled on a planning application being made, or in the event of notification of an objection to the development during the planning process?
  • What is pre-planning restrictive covenant insurance?
  • When is it appropriate to take out a pre-planning restrictive covenant insurance policy?
  • Can a policy be cancelled on a planning application being made?
  • Can a policy be cancelled if an objection is made to the planning application?

What is pre-planning restrictive covenant insurance?

Restrictive covenant insurance provides protection for people who hold an interest in land which is burdened by a restrictive covenant. It would ordinarily provide cover for loss in relation to damages awarded against the insured, costs of altering or demolishing a building to comply with a covenant, abortive works costs and legal costs. Such insurance may be obtained before planning permission has been obtained for a development where the intended development site is burdened by restrictive covenants.

When is it appropriate to take out a pre-planning restrictive covenant insurance policy?

Clearly, when it appears that a restrictive covenant may affect the planned development, every effort should be made to iron out issues as early as possible. However, pre-planning restrictive covenant insurance policies may be appropriate when there are issues which cannot be determined readily. Such polices are ordinari

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