Is The Property Insurable? A Trap For The Unwary!

Consumers are often unaware that small issues can have huge implications. What happens if you buy a home, but you can't insure it?

We offer a comprehensive pre-purchase contract and disclosure statement checking service to our clients, and insurance issues are among the most common problems we discover. The following situation unfolded a few weeks ago, and serves as an example of the way a seemingly minor issue can have enormous consequences.

The client asked us to check his contract and Section 32 Vendor Statement before signing up to purchase a property. The client had checked the property carefully, had made arrangements for his finance, and was aware that some recent works had been performed on the house.

The Section 32 statement contained a building certificate from the local council, stating that permission had been granted for the floor of the new extension to be built below the established flood level. The client believed that because the likelihood of flooding was not great, and the council had actually granted the permission, everything would be OK. Not so!

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