BRS Bespoke Risk Solutions

Rights of Light Insurance

Property development is a complex yet highly profitable business. Whilst there are huge profits to be made from developing and selling properties there are also huge risks of financial loss.


One factor for consideration is ‘rights of light’. If a property developer suffers a rights of light claim then this could spell disaster not only for the project but also for the brand equity and the bottom line. If a court awards an injunction to protect an injured neighbour’s rights then it is not unknown for a developer to shelve a project, walk away, or demolish the property after completion.

Rights of light insurance is designed to cover legal costs including settlements as well as reduction of land value. Rights of light insurance effectively helps developers transfer the financial risk off their balance sheet.

What can be covered?

Losses resulting from claims from third parties, whose property has or will be injured by the proposed development (as identified in the rights of light surveyor’s report) in terms of:

Additional cover includes:

Best practice advice from Bespoke Risk Solutions

Technical considerations

It is possible to interfere with an adjoining property’s right of light without causing a technical infringement, as it is the amount of light that a room is left with that is critical. As long as the light that is left is considered sufficient, then no injury will have been caused. Using the rule established in Carr Saunders v Dick McNeil Associates 1986, that sufficient light is where one lumen of light is available, at tabletop height, for 50% or more of the room area. This is measured today as the amount of sky visible through a defined window opening at a particular point within a room. On the basis that an overcast sky provides 500 lumens, 1 lumen per square foot equates to a sky factor of 0.2%. The easement of light is directly related to the amount of sky visibility available on the working plane and it is this that is measured by rights of light surveyors to assess an injury. If an injury is caused [i.e. the amount of light to an aperture is reduced below 50% – 55% or if already below this percentage, by any further amount], there are two basic remedies open to the injured party; seek an injunction, or accept damages.

For more information contact Bespoke Risk Solutions on +44 (0) 1702 200 222

Bespoke Risk Solutions Limited are an Appointed Representative of Leisureworld (GB) Ltd who are authorised and regulated by the Financial Conduct Authority (Financial Services Register No. 749920) You can check these details by visiting www.fca.org.uk

Bespoke Risk Solutions Ltd are registered in England and Wales No. 07292153. Registered office: Victoria House, 50 Alexandra Street, Southend-On-Sea, England, SS1 1BN Leisureworld (GB) Ltd are registered in England & Wales No. 02663024. Registered office: 1422/24 London Road, Leigh On Sea, Essex, SS9 2UL.

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