Daily Insurance Industry News
 
 
Daily Insurance Industry News
Thursday 19th of July 2018
September 29, 2010

First Title introduces home buyer cover

by Gill Montia

Story link: First Title introduces home buyer cover

First Title Insurance has launched the Home Owners’ Protection Policy (HOPP), which it says can provide solicitors with an effective tool to “de-risk” the house buying process, both for clients and mortgage lenders.

The new policy can offset losses from a number of risks associated with buying, mortgaging or using a residential property, including fraud, seller misrepresentation, boundary disputes and lack of planning permissions and building regulation consents.

The “no fault” nature of the cover means that claims can be made without clients having to prove negligence at their own expense.

By shifting the burden of risk from the solicitor’s professional indemnity insurance (PII) to the HOPP, First Title suggests that its offering can contribute significantly to the long-term stabilisation of the conveyancing market and PII premiums, which are currently running at record levels in the UK.

In related news, the Law Society has this week launched a new scheme to help law firms struggling to secure PII renewal terms.

SafetyNet will provide assistance to “distressed” firms, or firms seeking to avoid entering the Society’s assigned risks pool, or attempting an exit.

The scheme, which is managed by Lloyd’s broker PYV Limited, will provide such firms with access to insurers that specialise in distressed risks.

The cost of insuring the legal profession against professional negligence claims has soared in recent years because negligence claims tend to increase during times of economic uncertainty.

In addition, legal firms focused on real estate business have been singled out for a specific loading because if mortgage fraud has occurred, lenders may be inclined to sue.

 

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