Countrywide Legal Indemnities has launched a new insurance policy designed to protect homeowners and their lenders in case Japanese Knotweed is discovered at a property.
Growing by up to four inches a day, Japanese Knotweed, can sprout through concrete – both indoors and out, causing damage to buildings, roads, driveways and drains. The weed, which has been described by the Environment Agency as the UK’s “most aggressive and destructive plant”, can take up to seven years to eradicate.
Homeowners, who are legally responsible for the removal of any Knotweed found on their property, could face a fine or be hit with an ASBO if they fail to do so.
Given all that it is good to know there now is a way to protect yourself against a risk of this type.
Countrywide Legal Indemnities’ new policy will cover:
- the cost of obtaining a survey report from a knotweed treatment specialist
- treatment costs to eradicate knotweed
- repair and restoration costs for any damage caused by knotweed
- legal defence expenses incurred to handle any claim from a third party affected by the spread of knotweed.
Premiums start from as little as £65 for a £100,000 limit of indemnity. Homeowners are covered for 10 years, and lenders are covered for the full term of the mortgage, provided it is taken out within the period of insurance.
Countrywide’s underwriting development manager, Kevin Richardson, comments:
“Feedback suggests that an increasing number of property and lending transactions are being affected by potential knotweed problems.
“This is in the wake of a specific question on the TA6 property information form asking whether a seller’s property is affected by knotweed. If it is affected, lenders may refuse to release funds or may first require a survey and specialist treatment. Our policy covers the reoccurrence of a knotweed problem after it’s been managed.
“But where the question is answered ‘Not known’, it also creates uncertainty, as a knotweed problem could surface in the future. Even when the seller states that there is no knotweed problem, they may choose to stipulate that no warranty is offered, meaning that the buyer and lender are still at risk of a problem arising after completion.”
The innovative policy provides cover to the buyers, their mortgagees, lessees and successors in title in the event that knotweed is discovered at the property after the policy commencement date.
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