CILEx Conveyancing Level 6 Exam Prep 2026 – Complete Practice Test

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When using planning indemnity insurance to address lack of planning permission, which precaution should be avoided?

Alert LA to breach

Do not alert LA to breach

Seek demolition order

Do not alert LA to the existence of the breach

When planning indemnity insurance is used to address lack of planning permission, honesty with the planning authority and the insurer is essential. Concealing a breach or pretending it doesn’t exist undermines the purpose of the policy and can amount to misrepresentation, possibly invalidating the cover or preventing a claim.

The precaution to avoid is not alerting the local planning authority to the existence of the breach. Instead, disclose the breach and explore remedies (such as retrospective permission or other compliant steps) while coordinating with the insurer. The other options fit into a proactive approach to resolving the issue rather than hiding it.