If you`re planning any construction work on your property, it`s vital to be familiar with the concept of a party wall agreement. This is an agreement between you and your neighbor, which governs work that affects party walls, boundary walls, or excavations that are close to your neighbor`s property.

When you`re completing a party wall agreement, it`s important to consider an indemnity policy. This policy provides cover for any costs incurred due to a breach of the party wall agreement. Should any damage occur to your neighbor`s property as a result of your construction work, indemnity insurance will cover the costs.

An indemnity policy will also protect you against any claims made by your neighbor. Your neighbor may make a claim against you if they believe that your construction work isn`t in line with the party wall agreement. In this case, your indemnity policy will cover the costs involved in defending yourself against any claims.

It`s important to note that an indemnity policy is not a substitute for compliance with the party wall agreement. It`s not a way to bypass the regulations or to avoid taking responsibility for any damage caused by your construction work. Instead, it`s a way to provide financial protection in the event of a breach.

When selecting an indemnity policy, it`s important to carefully consider the policy wording. Different policies may have different levels of cover and different exclusions. Some policies may also require you to comply with specific requirements, such as notifying your insurer of any claims made against you.

In some cases, your neighbor may also require you to take out an indemnity policy as a condition of giving their consent to the party wall agreement. This is to provide additional reassurance that they will be financially protected in the event of any damage caused by your construction work.

In summary, a party wall agreement indemnity policy is an important consideration when completing any construction work that affects party walls or boundary walls. It provides financial protection against any costs incurred due to a breach of the party wall agreement, and also protects you against any claims made by your neighbor. It`s important to carefully consider the policy wording and to ensure compliance with the party wall agreement.