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PIB Insurance Brokers advertised a Party Wall Insurance project as an alternative to depositing Security for Expenses in escrow.
The primary benefit of this policy was that it meant that Building Owners no longer had to tie funds up in escrow as security - instead, they could simply purchase a contract of insurance and hold onto their funds.
The policy wording remains available online. Paraphrasing:
This policy protected only the adjoining owner.
Party Wall or Non-Negligence insurance protects the building owner against liability claims for non-negligent injury or damage to a neighbour’s property. Security for Expenses insurance, by contrast, covers the adjoining owner, removing the need for funds to be held in escrow or any other form of security.
It was the only policy specifically safeguarding an adjoining owner. If the building owner became insolvent or abandoned the works, the policy remained valid.
No. It was a standalone policy and did not replace normal construction or buildings insurance.
No, but the insurer could seek to recover costs from the building owner after paying a claim.
Like all bonds and insurance policies, the primary drawback is that even if the 'peril' doesn't come to pass, the cost of the policy or bond is lost. While there might have been a perceived benefit in not having funds tied up, the net cost to the building owner was almost certainly higher.
As far as we are aware, PIB Insurance Brokers no longer offer this product.
dospay is a trading name of DOS & Co. Ltd, a company registered in England and Wales with company number 08294966.
DOS & Co. Ltd. is authorised and regulated by the Financial Conduct Authority under the Payment Services Regulations 2017 (FRN: 1041318) for the provision of payment services.
All of our GBP escrow and third-party managed accounts are segregated and safeguarded at the Bank of England.
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