Freehold Restrictive Covenant Insurance 


Navigating the intricacies of insurance can be daunting, and one such policy that may appear complex at first glance is restrictive covenant indemnity insurance. Typically secured when purchasing a property, this insurance becomes crucial when the buyer discovers that the seller or previous owner has violated a restrictive covenant land clause. Sometimes referred to as a 'breach of leasehold covenant indemnity' policy, it essentially serves the same purpose.
In legal terms, restrictive covenant details are outlined in property deeds and signify a right in land. A few common examples include:
  • Prohibition of constructing any building on the land other than dwelling houses with garages and related outbuildings.
  • Restriction on conducting any business or trade on the land.
When is Restrictive Indemnity Cover Needed?
This type of insurance becomes essential when a restrictive covenant clause is breached. For instance, if a business is unknowingly operated on the property against the covenant's terms, the party with land rights may seek enforcement through legal means. This can result in financial losses and, in extreme cases, may necessitate ceasing operations or removing structures. Sellers may also opt for this insurance if they have violated a restrictive covenant and cannot remedy the situation, offering protection to the buyer.
Coverage Under Restrictive Covenant Indemnity Insurance
Understanding the scope of coverage is crucial. It typically includes:
  • Coverage for reasonable professional and legal fees related to a restrictive covenant case.
  • Covering out-of-court settlement costs as requested by the insurer.
  • Damages, expenses, or compensation (excluding fines or penalties) ordered by a court.
  • Insurance for costs associated with altering or reinstating the property in line with the covenant.
  • Any other costs or expenses incurred due to an insured risk.
The Value of Restrictive Covenant Indemnity Insurance
Amidst various insurance options, this type proves invaluable, especially for property buyers wary of potential covenant breaches. It also serves as future protection for sellers, guarding against unforeseen complications. In the complex world of conveyancing, where unforeseen issues may arise, having experienced professionals like Redkite Solicitors handling the process ensures a smoother property transaction. 


To discuss Freehold Restrictive Covenant Indemnity Insurance, please call us on 0345 603 0708 or email



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Freehold Restrictive Covenant Indemnity Insurance 

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