Right to Light Indemnity Policy: Everything You Need to Know

What Is a Right to Light Indemnity Policy?

A Right to Light Indemnity Policy is a specialist insurance policy that protects homeowners, developers, and lenders against the risk of legal action if a construction project blocks or reduces natural light to neighbouring properties. It covers legal costs, compensation, and potential damages if someone claims their right to light has been infringed under English property law.

Why the Right to Light Matters;

In the UK, a right to light is an easement; a legal right that allows a property to receive natural light through defined openings (like windows). If those windows have enjoyed uninterrupted daylight for at least 20 years, the property owner gains a right to light. When new developments reduce that light substantially, affected neighbours can seek compensation or even a court injunction to stop construction. This is where Right to Light Insurance becomes crucial.

What Does Right to Light Indemnity Insurance Cover?

Most policies include protection for:

• Legal defence costs for responding to a right-to-light claim.
• Compensation or damages awarded to affected property owners.
• Demolition or alteration costs if required by court order.
• Loss in property value (diminution) after a successful claim.
• Surveyor and solicitor fees linked to the claim.

Cover typically applies for the lifetime of the development and can extend to future owners or lenders.

Who Needs a Right to Light Indemnity Policy?

You should consider taking out a Right to Light Policy if you are:

• A developer planning new housing or commercial projects.
• A homeowner extending or altering your property (loft, side, or rear).
• A buyer or lender financing a property with potential right-to-light issues.
• A landlord or investor protecting an existing building.

If you are unsure, your solicitor or surveyor can carry out a Right to Light assessment and recommend suitable cover.

When Should You Arrange a Policy?

It's best to arrange cover before construction begins; ideally during planning approval or prior to loan drawdown. Insurers may refuse cover if neighbouring owners have already been notified or if a dispute has started. Once the policy is active, however, it will continue to provide protection for as long as you own the property.

How Much Does a Right to Light Indemnity Policy Cost?

Costs depend on:

• Project size and location.
• The number of affected windows or properties.
• The sum insured and cover limits.

Indicative pricing:

• Small residential extensions: £200 to £500
• Medium projects:£500 to £1,500
• Large-scale developments: £2,000+

Always obtain quotes from specialist indemnity brokers or insurers who handle right-to-light cover.

Benefits of a Right to Light Indemnity Policy are;

• Protects against costly legal disputes.
• Avoids project delays or redesigns.
• Gives confidence to lenders and buyers.
• Safeguards long-term property value.

Example Policy Wording (Simplified)

"The Insurer agrees to indemnify the Insured for all legal costs, compensation, and expenses arising from a claim alleging infringement of a neighbours right to light due to the Insured Development, subject to the policy terms and exclusions."

Common Exclusions;

• Prior knowledge of an active dispute.
• Contact made with neighbouring property owners.
• Deliberate concealment or non-disclosure.
• Physical damage to third-party property.

Always read your policy schedule and conditions carefully before purchasing.

FAQs About Right to Light Indemnity Insurance;

• What happens if I start building without a policy?  You may face legal action, court injunctions, or compensation claims; all of which can be extremely costly.
• Can I get insurance after a neighbour complains?  Usually not. Once a dispute has been raised, insurers will typically decline cover.
• How long does cover last?  Most policies last indefinitely and automatically extend to future owners or lenders.
• Does the policy cover planning permission issues?  No, it only relates to right-to-light disputes, not planning or boundary issues.

As a final thought, a Right to Light Indemnity Policy is an essential safeguard for anyone planning a development or property extension in the UK. It helps you avoid unexpected legal complications and protects your investment from potentially severe financial loss.

We would suggest that before starting any construction work, you check whether right-to-light risks exist, and secure cover early to enjoy peace of mind.

How to Obtain a Right to Light Indemnity Policy... simple, call Legal Brokers on 0345 603 0708 or email indemnities@legalbrokers.com for more details.

Legal Brokers Ltd

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