Rights of Light Indemnity Insurance

Rights of Light indemnity insurance protects against costs and expenses associated with loss of light to neighbouring premises.

These rights of light can arise -

• By prescription at common law
• By the doctrine of Lost Modern Grant
• By prescription und the Prescription Act 1832 (the most common method of acquiring an easement of light)

If you are developing a property you should be aware that your neighbours will have a Right of Light. This means that if your development affects the light they receive they may be entitled to compensation. You can decide to try and identify all the affected parties and seek to negotiate with them prior to development. This can be time consuming, costly and  uncertain since it is difficult to identify all of the affected interests. For example there may be freeholders, leaseholders and other financial interest which can be difficult to identify.

The use of neighbouring property can be a factor in deciding the detrimental affect. As you would expect residential occupants would have a greater expectation of a right of light than a commercial tenant but nevertheless they can both suffer damage and expect compensation.

An affected neighbour could take out an enforcement action and the threat of this or an injunction can have serious financial implications for your development.

Many developers now choose to arrange Rights of Light Indemnity Insurance to provide cover against the affects of an injunction or enforcement action.

There are several insurers providing Rights of Light Indemnity Insurance and RMK can assist you in obtaining the most competitive price for your development. Please note that premiums for rights of light insurance generally start at £5,000 so are more suitable for larger developments.  

Please contact:

Michael Richards FCII on 01702 426350

Or e-mail: mike@rmkltd.co.uk

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