What Is Building Regulations Indemnity Insurance For Landlords?
Building regulations indemnity insurance is a one-off policy that protects you if building work on your rental property was completed without proper building control approval. It covers enforcement costs, remedial work, and legal expenses if your local authority takes action over non-compliant work.
As a landlord, you are responsible for your property’s compliance with building regulations, even if the non-compliant work was done by a previous owner. Missing completion certificates can delay sales, block remortgages, and create problems when letting.
The policy is arranged as a one-off payment with no annual renewal. It typically costs £100 to £500 and runs indefinitely for as long as you own the property.
Do not contact your local authority before taking out this policy, or most insurers will refuse cover. Building regulations indemnity insurance is a one-off payment (typically £100 to £500) that protects you indefinitely if previous building work was never signed off by building control.
Compare landlord insurance quotes to review your wider cover at the same time.
- What Does Building Regulations Indemnity Insurance Cover?
- When Do Landlords Need This Insurance?
- How Long Can the Council Take Enforcement Action?
- How Much Does Building Regulations Indemnity Insurance Cost?
- Should You Get Retrospective Approval Instead?
- What Should Landlords Look For in a Policy?
- Frequently asked questions (FAQs)
What Does Building Regulations Indemnity Insurance Cover?
The policy covers the financial consequences of enforcement action by your local authority, including remedial work, legal defence, property value loss, and council fines.
Financial protection
If your council requires you to bring non-compliant work up to current standards, the policy reimburses the cost of remedial work. This can run into thousands for structural alterations, loft conversions, or extensions.
The policy also covers solicitor and barrister fees if you need to challenge or respond to an enforcement notice. This overlaps with legal expenses insurance, but the indemnity policy is specific to building regulation breaches.
Policy terms
Most policies are a single payment with no renewal required. Cover runs indefinitely and usually transfers to future owners if you sell the property.
The cover typically includes diminution in value, which protects you if the non-compliant work reduces what the property is worth. This is separate from your standard buildings insurance, which covers damage rather than regulatory non-compliance.
When Do Landlords Need This Insurance?
You need building regulations indemnity insurance when building work has been completed without a completion certificate from building control, and getting retrospective approval is not practical.
Common scenarios
The most common trigger is discovering missing certificates during a sale or remortgage. Mortgage lenders require evidence of compliance, and missing paperwork can delay or block the transaction.
Loft conversions, extensions, structural alterations, boiler replacements, and rewiring all require building regulation approval. If a previous owner did the work without sign-off, the liability sits with you as the current owner.
The critical warning
You must not contact your local authority about the non-compliant work before taking out the policy. If the council becomes aware of the issue, enforcement action becomes more likely, and most insurers will refuse to provide cover.
This is why solicitors and conveyancers typically arrange the policy as part of a property purchase. If you need landlord insurance and discover missing certificates, take legal or insurance advice before approaching the council.
Related: Do Landlords Need Legal Expenses Insurance?
How Long Can the Council Take Enforcement Action?
Since 1 October 2023, local authorities in England and Wales can take enforcement action for building regulation breaches up to 10 years after the work was completed. The previous time limit was just 12 months.
The 10-year rule
The extended enforcement window applies to work completed on or after 1 October 2023. Work completed before that date remains subject to the old 12-month limit.
However, a compliance notice served within the time limit can be enforced indefinitely. This means even older work can face action if the council got involved before the deadline passed.
Why this matters for landlords
The 10-year window makes indemnity insurance far more important for recent works without approval. Under the old 12-month rule, enforcement was rare because most issues went unnoticed in time.
If you are buying a buy-to-let property with recent alterations, check whether completion certificates exist for every piece of work. The longer enforcement period increases your risk.
How Much Does Building Regulations Indemnity Insurance Cost?
Premiums typically range from £100 to £550 as a one-off payment, depending on the type of work, property value, and your location. In almost every case, the indemnity premium is a fraction of the remedial cost.
Cost by scenario
| Scenario | Typical premium | Typical remedial cost without insurance |
| Bathroom renovation without approval | £100–£150 | £500–£2,000 |
| Boiler or heating system upgrade | £120–£180 | £800–£3,000 |
| Loft conversion without sign-off | £250–£400 | £5,000–£15,000 |
| Minor structural alteration | £300–£450 | £8,000–£20,000 |
| Extension without building control | £400–£550 | £10,000–£30,000 |
What affects the price
The premium is based on your property’s value, the scale of the non-compliant work, and your location. The overall cost of landlord insurance is separate, as indemnity insurance is a standalone product rather than an add-on.
Higher-value properties and larger-scale works attract higher premiums, but even the most expensive policies are a fraction of what remedial work would cost.
Related: How Much Does Landlord Insurance Cost?
Should You Get Retrospective Approval Instead?
Retrospective building control approval is sometimes possible, but it is not guaranteed. Local authorities have discretion and may refuse approval for older work or work where quality cannot be verified.
When retrospective works
If the work was done recently and to a good standard, retrospective approval confirms it meets current regulations. This is generally the better option because it removes the compliance issue permanently.
However, approaching the council alerts them to the non-compliant work. If they then refuse retrospective approval, you will no longer be able to get indemnity insurance either.
Why solicitors recommend indemnity first
Most conveyancers recommend taking out indemnity insurance without contacting the council first. If the work was completed years ago and the evidence of quality is limited, indemnity insurance is the safer route.
This is a common decision point when buying rental properties. Your solicitor can advise on whether retrospective approval or indemnity insurance is the better option based on the specific works involved.
What Should Landlords Look For in a Policy?
Check the cover limit, the specific works described, whether the policy transfers to future owners, and any conditions that could void the cover.
Cover limits and terms
The cover limit should be enough to pay for the worst-case cost of remedial work. For structural alterations or extensions, this could be £20,000 or more.
The policy should clearly describe the non-compliant work it covers. Note that building regulations indemnity insurance does not cover contents or general property damage.
Voiding conditions
The policy will be voided if you contact the local authority about the non-compliant work, or if you carry out further work that draws attention to the original non-compliance.
Most policies transfer to future owners automatically, which matters if you sell the property. As a private landlord, duration is typically indefinite from the date of purchase with no renewal required.
Where to arrange cover
Your solicitor or conveyancer can arrange the policy as part of a property purchase. If you are looking at your wider cover, compare landlord insurance providers to find the right overall package.
Frequently Asked Questions (FAQs)
Yes. There is no time limit on when the work was completed, and the premium is based on the type of work rather than its age.
Most lenders accept it as an alternative, but check with your specific lender before purchasing the policy to confirm they will accept the terms.
Most insurers will refuse to provide cover once the council is aware of the non-compliant work. You will likely need to pursue retrospective approval or carry out remedial work instead.
No, as the insurance covers the financial consequences of enforcement action rather than the physical safety of the work itself. If non-compliant work poses a safety risk, you have a legal duty to fix it.
No, as a structural warranty covers defects in new build or conversion work for a set period of typically 10 years, while building regulations indemnity insurance covers the consequences of work that was not approved by building control.
No, as standard landlord buildings insurance covers damage to the property structure rather than regulatory non-compliance, so indemnity insurance is a separate standalone product.