PI insurance vital as property owners make claims

04/05/2010

Written by Neil Pointon

Last year, the amount of legal action being taken by Britons against estate agents and surveyors reached a record high following the property market crash, according to Reynolds Porter Chamberlain.

The law firm revealed that 25 high court cases took place where professional negligence was alleged, in comparison to the single case that took place during the preceding five years.

Rebecca O'Connor, writing for the Times, explained that many mortgage lenders are blaming surveyors, although there is no evidence that losses have been caused by negligence.

She cites a warning from the Royal Institution of Chartered Surveyors, which claimed that a surveyor can be put out of business by the threat of legal action and it must inform the provider of its professional indemnity (PI) insurance.

Even if it successfully fights the claim, this process could see it facing a higher premium at future renewals.

Alexandra Anderson, a partner at Reynolds Porter Chamberlain, said: "Even if the [surveyor's] valuation was inaccurate, that doesn't necessarily mean that there was negligence."


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