Right of light insurance
Insurance policies are available to protect developers from the risk of possible future claims resulting from infringements of rights of light.
Cases such as HKRUK II v Heaney (2010) have highlighted the legal system's increased willingness to award an injunction against the developer rather than simply awarding compensation to the injured parties. The costs of compensation/damages can be significant; sometimes being based on up to 30% or more of the developer's profit. The consequences of an injunction will in most cases be even more costly than a damages claim – particularly if it involves demolition of part of a completed building.
In order to allow a development to proceed, a developer can take out an insurance policy to protect themselves from a range of potential costs. The extent of cover will vary from insurer to insurer.
Typically, insurance will cover:
- Legal costs involved in addressing claims.
- Compensation settlements.
- Abortive design and construction costs.
- Loss in land value in the event the developer's project is permanently halted or curtailed by the court.
This article was written by --Right_of_Light_Consulting
[edit] Find out more
Related articles on Designing Buildings Wiki
External references
Featured articles
Check out some of the best features and news from Designing Buildings as well as key stories from around the web.
Accommodating the Victorian and Edwardian working woman. Book review.
Rethinking passive fire protection in design
PFP demands the same level of design rigour as structure or services.
38% of Gen Zs feel safe when a fire door is wedged open.
Stunning images from around the world
Shortlist for CIOB’s Art of Building photography competition.
Guidance for conversion of traditional pre-1919 stone buildings.
Industrial heritage in the Ruhr
A marked difference to the fate of industrial landscapes in the UK.
Communities will be able to build their own clean energy.
Why diversity and inclusion matters for SMEs
CIOB’s D&I Charter shows how practical changes can support long-term growth.
Cut electricity bills to power growth
Coalition sends joint letter to the Chancellor.
Gasholders: a history in pictures. Book review.
Recognition, influence and growth
SocEnv identifies three strategic pillars in new strategy to 2045.
Discover the future of roofing, cladding and insulation.