Covenants Restricting Development
What are the key covers, features and benefits?
This policy is a form of restrictive covenant indemnity which can be obtained prior to the breach of covenant taking place. Examples of covenants restricting development would be density restrictions (i.e only one dwelling can be built but planning obtained for, say, three), requirement for plans to be approved by the former land owner, requirement that the land can only be used as garden ground etc.
If a party were successful in taking action by way of an injunction, the policy would compensate the Insured for the costs incurred or contracted for since the Commencement Date, as well as the loss in value.