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Hip U-turn could double cover costs for inspectors

The Government’s decision to axe home condition reports could double the cost of PI cover for home inspectors, according to PYV.

Chief executive Neil Pointon says the Government’s U-turn could have an added effect of raising PI costs for home inspectors as fewer insurers are likely to enter the market, making cover harder to come by and more expensive.

Pointon says this lack of competition in the market, exacerbated by the fact that many bigger players will not offer home inspector cover, could see their PI costs double the rates which were offered when HCRs were mandatory.

He says PYV has been considering a move into the market, including offering additional cover for brokers and advisers wanting to take on the new role as well as stand-alone cover.

Pointon says he is researching the market for a number of people looking for cover and is developing tailored PI cover in conjunction with the Department of Communities and Local Government.

Fears surrounding PI cover for home inspectors was one of the worries raised by Tory MPs when they argued for Hips to be scrapped.

Pointon says: “The Government’s home condition report U-turn will have the additional effect of causing a big increase in PI cover, potentially doubling the estimates of cover given when home condition reports were still going to be mandatory.”

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