Rights of Light Insurance is a type of Legal Indemnity risk, specifically an easement. The insurance product has evolved over the past decade, seeing a departure from standardised wordings and the ability to build a more robust product that is specific for each individual site.
How does Rights of Light Insurance work?
The insurance product is a risk transfer mechanism that allows you to draw a financial line with cost exposure (excluding professional fees) in relation to Rights of Light. The heads of loss within the policy range from compensation settlements to loss in market value of the site, in the event of an injunction.
This product puts developers in an advantageous position in the property market, from obtaining funding to disposing of the site. At this current juncture, Rights of Light Insurance is a requirement by most funders on developments.
Once a Rights of Light report has been obtained, providing EFZ and contour data, then insurance can be sought as a risk transfer mechanism to cover all the affected properties highlighted. We will collate the information provided by the surveyor, developer and solicitor, and present the risk to the market.
Once we hear back from insurers, we will compare the terms offered and provide our recommendation on which is the most suitable for you and your requirements. Not only do we take the competitiveness of premium into consideration but also the proposed strategy for each individual property and whether this suits your intentions.