Insure against a brothel next door

AN unexpected phone mast, noisy brothel or simply the wrong type of school are among the risks homeowners can now insure against with backing from Lloyd's of London.

Retail insurance broker Lucas Fettes and Partners has launched its 'blight cover', offering protection against a fall of up to a £100,000 in the value of a home for these and other not-in-my-backyard types of worries.

Director Richard Heighton said: 'For most people, the home is their biggest asset. An unforeseen planning decision such as putting up a home for the mentally unstable on your street can easily knock 20% of your house value.'

Controversial mobile phone masts are covered under specific terms for 'pylons, aerials and telephone masts'.

Meanwhile, Britain's growing anti-wind farm lobby can take heart from specific reference to wind turbines.

Heighton admitted that while it may be difficult to make specific reference to crack dens or brothels - growing problems for many London homeowners - there is room for a catch-all protection under anti-noise provisions.

'Unsociable behaviour would be a fantastic provision but is too difficult to define,' he said. 'Noise can be measured with the help of complaints to local authorities, so you may get cover only for noisy prostitutes - the mind boggles.'

Lucas is working on adding protection against the unexpected arrival of so-called traveller communities.

A policy is only valid, Insurance Times reports, if it is bought within 13 weeks of moving to the property or 13 weeks of remortgaging it with the benefit of a local search performed by a solicitor.

The policy costs a flat £12 a month and is underwritten by Lloyd's members, including Small Business Consortium and Equity Red Star.

Heighton said he expects to take £1m of premiums from the policy in the next year and is talking to building societies about offering it for new mortgage customers.

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