Real Estate

Even if planning permission is granted, Rights of Light challenges can still pose a significant threat to a development project, resulting in costly delays or, in a worst-case scenario, the building being subject to significant redesign. Funders expect the risk to be dealt with before agreeing to fund a project, and our policy provides a comprehensive indemnity for financial losses incurred as a result of Rights of Light claims, including:

• Legal and professional fees
• Cost of settlements
• Damages, compensation and other expenses awarded by a court order
• Construction and building costs for altering or reinstating the building in the event of a court order
• Reduction in market value following a cutback
• Contractual losses which become abortive
• Additional finance costs
• Policy extensions: consequential losses arising because of a temporary injunction, such as delay costs, loss of rent and alternative accommodation costs.

Our specialist underwriting team has extensive experience in Rights of Light matters, meaning we have the know-how to unlock solutions for higher risk and complex projects, including projects where proactive negotiations with surrounding owners forms part of the developer’s risk mitigation strategy.

Since writing our first policy in 2010, we have established ourselves as market leaders in the space. We delivered the first agreed conduct wording that now helps developers manage claimant risks before the courts have to, giving them the confidence to release more of their reserves. At MX, we insure over 1500 Real Estate projects across the UK and Ireland, from housing developments to landmark city-centre commercial buildings, with a cumulative limit of indemnity of circa £50 billion.