18th May 2022
Do you know where to draw the line?
Boundary disputes are on the rise post-pandemic, but protection is available.
COVID-19’s various lockdowns have meant that everyone has spent an inordinate amount of time at home in the last few years. Many have used this time to plan home improvements and this has led to a boom in extensions. The consequent “work from home” movement also means that domestic properties are now used in different ways as people merge their professional and personal lives.
Combined, this shift in focus has brought boundary issues to the fore, and roughly 6.6 million UK residents have been involved in a boundary dispute in the last year.
A boundary doesn’t exist in any physical form; to all intents and purposes, it is an imaginary line, yet it has the power to drive a wedge between neighbours.
There are two main types of boundary issue: a common law boundary issue – where one party must apply to the court for a declaration of the boundary line – and trespass/encroachment, where one party claims the other party has occupied their land. Sometimes encroachments are significant, but the dispute is often entirely disproportionate to the land.
One UK law firm stated it had seen a 150% rise in boundary disputes post-pandemic. Lawyers will encourage parties to mediate and avoid litigation per the Civil Procedure Rules. However, if parties cannot resolve the dispute themselves, they must refer it to the County Court or First Tier Tribunal.
“We’ve had to re-mortgage because of the legal fees”
A couple has been left in thousands of pounds of debt stemming from a boundary issue over six inches of land.
The couple replaced fence panels in their garden and used the original cement post, which had been in place for around 50 years. Their neighbours then argued that this replacement was “trespassing” onto their garden. Due to the cost of legal fees to settle the dispute the couple built up a plethora of debt and had to re-mortgage their home.
This is just one of the many cases highlighting how expensive and emotionally draining these cases can get. The insurance products below can help mitigate potential financial loss that boundary issues can cause.
Adverse Possession Insurance
This product is necessary when your property includes land that is not registered in your name at the Land Registry, and is claimed by possession only and the owner of that land subsequently challenges your possession.
Access Insurance
This product is required when you need to access your property across land that doesn’t belong to you and the owner of that access way prevents you from using it for pedestrian and or vehicular access to and from your property as you have no legal right to do so.
Both of these policies typically cover you for the following:
- Loss or damage caused by any of the insured events
- Costs that you must pay to someone else as a result of an insured event
- The difference between the value of your property and immediately before final judgement or settlement resulting from an insured event
- Demolition, alteration and or reinstatement costs
- Costs and expenses (including but not limited to architects, planners and surveyor fees) that you have already incurred in accordance with the insured use
- Interest due under the terms of the mortgage of your property
If you’d like to discuss these policies in more detail or have any questions, please do get in contact with us.
Arthur J. Gallagher (UK) Limited is authorised and regulated by the Financial Conduct Authority. Registered Office: The Walbrook Building, 25 Walbrook, London EC4N 8AW. Registered in England and Wales. Company Number: 119013.