Environmental Liability Indemnity
Introduction
Keeping in touch with topical issues when they have potential implications on property is crucial for lenders, and the problem of contaminated land is one that cannot be ignored by either lenders or homeowners. As increasing numbers of local authorities determine land as contaminated, lenders are faced with the possibility that their loan security could be at risk if left in possession of a property situated on contaminated land.
A new approach
As soon as a local authority determines that a property is standing on contaminated land, it follows the ‘polluter pays’ principle, where the most appropriate person, such as the original polluter or developer, pays the clean up costs. However, if no such person can be traced, the responsibility for remediation passes to the owners or occupiers of the land. As lenders in possession, this could be you – this is where Excel’s Environmental Liability Indemnity comes in.
Simple and flexible
Our Environmental Liability Indemnity can help when a borrower defaults on the mortgage of a house situated on contaminated land. In this situation, you are left with a property drastically reduced in value that will be difficult to sell. Rather than face this delay and uncertainty, our policy covers any shortfall in the market value of the property as a result of remediation work having been completed. With our policy, you can ensure your loan security isn’t jeopardised by the threat of contaminated land.
Environmental - key benefits
- Protects your entire residential property portfolio against losses caused by the growing number of cases of local authorities determining land as contaminated
- Covers every new loan granted
- Features a generous minimum limit per property of £50,000 (higher limits may be available upon request)
- Covers any shortfall in the market value of a specific property
- Includes a no claims discount where your policy is running claim free
- Offers a size of book discount
- CML handbook compliant
Our policy wordings are available on request. Please click here to contact us and request a copy.
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