The Contingent Buildings Insurance legal indemnity policy provides cover when any part of the building of which the flat forms part is damaged by a type of event against which the flat or the building was insured at the policy’s commencement date, but
- the landlord, managing agent, residents association or another lessee has failed to insure entirely or for an adequate amount
- reinstatement of the building is frustrated by planning controls or the lease does not oblige the landlord to reinstate
- the lease could be determined in the event of major damage
- the landlord keeps the proceeds of the insurance without reinstating
- the insurance arranged by the landlord, managing agent or residents association proves invalid as a result of the act of third parties.
The property must be based within England and Wales
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Key Features and Benefits
If the building of which the flat forms part is damaged and it is not possible to reinstate the building for any of the reasons described above, the policy includes cover for the following, up to your selected limit of indemnity (not exceeding £1 million*):
- the reduction in value of the property owner’s interest in the property
- costs and expenses incurred with our consent.
The policy automatically covers subsequent owners of the property and their mortgage lenders, and remains in force for 25 years from its commencement date. Mortgage lenders are covered for the full period of any loan that commences within that 25 year period.