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Insurance

PRODUCT OUTLINE

Our Proposal:

1) Plugging a risk gap where a buyer/seller is in the process of buying/selling a property and finding that either the previous owners did not comply with planning permissions or the current owner has carried out works without planning permission; or there are onerous restrictive covenants/easements burdening the property title.

2)

  1. ) Remedial costs associated with correcting the property to meet the agreed planning permissions should this be required.
  2. ) To insure against the equivalent loss & value as per the example.

3) Period of Insurance – Industry accepted standard which is 8 years from the granting of the policy. Policy to be assignable on future sales of the property. The policy is renewable every 8 years subject to standard conditions and compliance.

NB

A. This policy is not designed to pay for retrospective upgrading of a property to meet new legislation or standards.

B. We are not providing latent defects cover.

Example:

A property valued at €6,000,000 in Ibiza has an extra bedroom that was built without a license, and there is a very small risk that the local council can issue an order asking for the extra bedroom to be removed. The estimated value of the house then would be €5,000,000. The €1,000,000 difference would be insured against and an insurance premium paid as a percentage of this difference.

PRODUCT INFORMATION

What is this type of insurance?

This is a defective title insurance policy to cover you against a broad range of risks relating to the title of your property that you are buying, relating to certain deficiencies in the provision of critical documentation relating to the Certificado de Final de Obra as well as the Cedula de Habitabilidad.

What is Insured?

  • Reasonable legal & other professional fee and expenses relating to an Enforcement Notice on your property.
  • The costs of altering, demolishing and/or reinstating all or part of your property required by an Enforcement Notice.
  • Reduction in the Market Value of your Property caused directly by an Enforcement Notice
  • The costs incurred by you to free the Property from an Enforcement notice
  • Any other costs and expenses you incur in relation to an enforcement Notice

What is Not Insured?

Main exclusions only

We will not be liable to indemnify You for

  • Loss arising wholly or partly because of the willful act or neglect of You after the Inception date.
  • Loss arising from alterations made to the Property after the Inception Date
  • Loss arising from any retrospective building regulation approval for an existing use without Our prior permission
  • Any other specific exclusion or limitation shown on your schedule

Are there any restrictions on Cover?

Certain limitations may apply to your policy, for example:

  • We will not pay more than the limit of indemnity shown in your schedule and policy
  • Any loss resulting from alterations made to the Property after the inception of the Policy

Where am I covered?

The Balearic Islands of:

  • Formentera
  • Ibiza
  • Majorca

What are my obligations?

  • You must take reasonable care to make sure all information provided by you is honest and accurate whether you’re taking out, renewing or making changes to your policy
  • Check your policy documentation. Please tell us immediately if the information set out in the application form or policy schedule issued needs to be changed
  • You must observe and fulfil the terms, provisions, conditions and clauses of this policy – failure to do so could affect your cover
  • You must tell us about any event which might lead to a claim as soon as possible

For full details please see the Claims Section of the policy wording

When and how do I pay?

  • Payment of premium must be received in full before your policy commences

When does cover start and end?

  • Cover starts from the Inception Date (shown on your schedule) fand ends after 8 years from the Inception Date.

How do I cancel the contract?

  • You can cancel cover at any time by contacting us
  • If you cancel your policy before the cover starts, or within 14 days of cover commencement or renewal, we will refund the premium, so long as no claims have been submitted during the period
  • If you cancel after 14 days of cover commencement or renewal, we will refund the proportion of the premium paid for the unexpired period of insurances, less any policy fees, so long as no claims have been submitted during the period

For full details please refer to the policy wording.

BTI INSURANCE, Balearic Title Insurance