Building Permits & Title Insurance

Building permit issues: Are your clients covered?

The following was taken from First Canadian Title Insurance website on April 27, 2011

Building Permits. Encroachments. Survey Issues. Fraud.
We’ve got your clients covered.

It’s a well known fact that title insurance can save your clients thousands of dollars if a claim arises. However, what you may not know is that the highest claims costs in Western Canada are due to building permit issues.

Today, losses associated with open or non-existent building permits are becoming more and more prevalent. Having a title insurance policy can protect your clients against building permit issues and so much more.

Consider the following real-life examples relating to building permit claims:

Alberta claim example

The insured homeowners received a letter from the city advising them that their deck, deck addition, and deck roof, as well as the basement development in their recently purchased home were constructed without building permits. As a result, the city demanded that the proper building permit be obtained for the basement development, and that the deck, its addition and roof, must be removed. The cost of implementing these requirements was $54,044.50. Because the homeowners had a title insurance policy from FCT which insures against loss related to enforced removal or remediation due to lack of building permits, they were covered and didn’t have to pay any of the costs of compliance with the city’s order.

British Columbia claim example

Another insured homeowner was experiencing plumbing problems in his house and called in the municipality to conduct a site inspection to determine the cause. While on site, the inspector found numerous issues with the dwelling, in addition to illegal gas and plumbing lines. To make matters worse, an entire addition to the home and garage renovations were done by a previous owner without any permits. The municipality issued an Order to Comply, requiring the homeowner to obtain permits and to make the numerous changes required to comply with the Building Code. The cost of these changes amounted to a staggering $270,797.00! Thankfully for the insured, his FCT policy covered these expenses and he was spared this potentially devastating financial blow.

You can protect yourself, your clients, and provide the best service possible with comprehensive title insurance coverage from FCT-the leader in the industry.

To learn more about title insurance and how it can protect against building permit issues and more, contact 1.866.804.3122. (First Canadian Title)

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