R is for Restrictive Covenants

R is for Restrictive Covenants

Restrictive covenant policies rank amongst our most sought-after products, and it isn’t hard to see why. Title deeds very often contain covenants ranging from the mundane to the downright bizarre.

Over the years, our underwriters have received enquiries about covenants that seek to prevent owners from hanging their washing outside, having more than two pets, or even making bricks!

More likely, though, your clients are more concerned by covenants in the title deeds that seek to prevent them building further on the land, or making changes to their property. They might also be worried that the deed(s) are missing, or has missing pages; these could contain all manner of covenants, which the client could innocently and unknowingly breach. Or there is always the possibility that previous owners have breached a covenant, which your client will want protection against as a successor in title.

And although covenants are less likely to cause a problem the older they are, that’s not always the case. We recently settled a claim for an extension built in 1974 that breached a covenant established in 1944! Another claim we handled involved a policyholder who wanted to build 14 flats and 4 houses on their land, but who received letters from another developer claiming the benefit to enforce restrictive covenants from 1905.

So whether a restrictive covenant is old, unusual, or even unknown due to missing title deed(s) or pages, we can help you protect your client against unnecessary costs, delays, and disruption.