Right to Light Insurance is important in safeguarding your property's access to natural light.
Right to Light Insurance is a vital safeguard for property owners, both freehold and leasehold, ensuring their right to an adequate amount of natural light within their property. This protection ensures that the introduction of new developments, constructions or renovations in neighbouring areas does not compromise your property's access to daylight.
A 'Right to Light' refers to a specific amount of light in a room or space. According to the 50:50 rule, a Right to Light injury occurs when the natural light within a room is reduced to less than 50% of it's original amount. If a neighboring project causes such a loss of light, property owners can make a claim against the developer.
This right can be documented in the Title document of properties, and in cases where there isn't a specific document, it's generally applicable to buildings over 20 years old.
Right to Light insurance, therefore, provides protection against the financial consequences of a third party asserting a claim for the loss of light, which includes legal and professional fees, settlement costs, and catastrophic losses following an injunction.
Benefits of Right to Light Insurance
1. Risk Mitigation - Right to Light insurance provides financial protection for developers in case of claims or disputes. This support covers legal fees, court costs, compensation and orders to re-develop or demolish a property.
2. Flexibility - Right to Light insurance policies can be customized to suit the unique needs of each development project, accounting for factors such as scale, location and potential impact on neighbouring properties.
3. Peace of Mind - With Right to Light insurance, you can proceed with your projects with confidence, knowing that you are financially protected against unexpected legal challenges and potential financial setbacks.
4. Investment Protection - This insurance is an essential tool for safeguarding your investment by minimizing the financial risk of claims.
What Does Right to Light Insurance Cover?
Right to Light insurance provides protection against two types of injunctions: prohibitory injunctions (preventing further construction) and mandatory injunctions (requiring the removal of existing construction.) Additionally, it covers the cost of any compensation that may be granted following an injunction against the developer.
By securing Right to Light insurance, you ensure that your property's access to natural light remains uncompromised, and you are protected from the financial implications of any disputes or claims. This valuable protection can be tailored to meet your specific project requirements, giving you the peace of mind needed to move forward with your property development endeavours.