Most estate agents and letting agents will be aware that the Property Misdescriptions Act has now been repealed.
The legal landscape for Agents has changed with the Consumer Protection Regulations now being extended to also apply to property agents.
So the question is why are some insurers still referring to the Property Misdescriptions Act in their wordings?
The Act does not apply any more and it does beg the question of how well do they really understand your business and your liabilities. Which then leads to the question of how well will they be able to defend you if you have a problem and how likely are they to pay a claim if they are not even aware of what the relevant liabilities and statutes are.
Some Property agents professional indemnity wordings state that the insurer will only pay 80% of the defence costs for a property misdescriptions act claim. A very large contribution from the estate agent or letting agent for a claim from an Act that no longer exists..!
Our wordings have been relaunched to incorporate the new CPRs and we do not ask for unreasonable contributions from our insureds.
We are always happy to take any queries from estate agents and letting agents.
Feel free to call us on 0207 648 4343.