Home Completing holiday build, no pp but under appeal, can we insure the property?

[TwoWheels]

My family are coming close to completing a holiday build, however we have run into planning permission problems and currently we have no PP.

My question is this:
Can we insure the building?

If there is a fire/disaster/flood/etc, will the insurance use this as a reason not to pay out?

We expect the appeal process to last 6-8 months, but obviously during this process we will have no PP, so will the insurance cover us?

Thanks guys.
C.

 

[peteb]

Re: Insuring a property with no planning permission

No reason why you cant insure the property. The planning permission issue is a civil matter, nothing to do with insurance. They couldn't deny the claim on that basis.

 

[Claimsman]

Re: Insuring a property with no planning permission

No reason why you cant insure the property. The planning permission issue is a civil matter, nothing to do with insurance. They couldn't deny the claim on that basis.

I honestly dont mean to come accross as abusive, but is this advise that you are giving based upon any knowledge of the subject, or is it a guesstimate on your behalf?

Unless you are a underwriter, broker or somebody who deals with such issues on a professional basis, I really do believe that you should not give a opinion on something like this.

My guesstimate is that you do not fall into any of these categories as the advise you are giving is seriously flawed.(check out insurable interest and non disclosure).

The OP should speak to their brokers/insurers who will professionally advise him/her of the position.

 

[Bronte]

Re: Insuring a property with no planning permission

The insurance company will have no interest in whether the property is with or without planning permission. It has no relevance to them.

 

[mf1]

Re: Insuring a property with no planning permission

The insurance company will have no interest in whether the property is with or without planning permission. It has no relevance to them.

Not true. Its actually a huge problem for the OP. An unauthorised structure will not be covered by insurance unless there has been a specific agreement about same when arranging cover.

Claimsman is 100% right.

mf

 

[Bronte]

Re: Insuring a property with no planning permission

My apologies on this, I never thought it would be an issue with the insurance company. There must be an awful lot of people in Ireland though with structures without planning permission such as sheds/outhouses/worksheds/garages. Does this make their property uninsured I wonder?

 

[Jimbobp]

Re: Insuring a property with no planning permission

You will need to disclose this to the insurance company in question. A full policy won't be available to you at this stage anyway as the house isn't complete. You will need to take out a building under course of construction policy. Zurich or benchmark do this, but as the other posters said, you will need to disclose all material facts.


www.powerinsurances.ie

 

[Ravima]

Re: Insuring a property with no planning permission

PETEB,

does this mean that if the local authority demolish the premises due to its illegality, that the insurer will pay up the full sum insured?

If not, and the property must be demolished at the end of the appeals process, if it was unfortunately burned to the ground a few days after the order to demolish was made, would the insurer pay out the full sum insured? I have my doubts.

Is is not against public policy to profit from anything illegal?

 

[peteb]

Re: Insuring a property with no planning permission

C'mon Ravima, thats a stretch of the highest order!! Demolition is not an insured peril! Are you implying that the insured party would then say there was "a fire"? Thats fraud and different!

And yes its public policy not to profit from anything illegal. But lets throw back to indemnity. If the property was destroyed by a fire during the process, the insured has still spent x amount of money for the property and is entitled to that back!

 

[ajapale]

Re: Insuring a property with no planning permission

Thread temporarily closed for consideration by mods.

Askaboutmoney has developed a reputation for civilised and informed discussion of financial topics in a sponsorship-free and advertising-free environment. It should be possible to discuss contentious matters without attacking the person expressing the opinion.

As always on AAM the advice is to get independent professional advice as suggested by claimsman:

The OP should speak to their brokers/insurers who will professionally advise him/her of the position.