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Terrafirma Terms, Conditions & CON29M Coal Insurance

The following sections provide information regarding the cover and terms & conditions applicable from the CON29M section of the FCI/Terrafirma Premium Plus CON29M Report

Coal Search Insurance Conditions

This is a summary of the policy applicable to the FCI/Terrafirma Premium Plus CON29M Report linked to this web page.


Coal Search Insurance means the insurance policy provided by ERGO Versicherung AG, UK Branch (“Insurer”) which is authorised by Bundesanstalt für Finanzdienstleistungsaufsicht and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority.

ERGO Versicherung AG, UK Branch is wholly owned by Munich Re, and is rated AA- (Very strong) by Standard & Poor’s.

“Insurance” means the Insurance covering the loss in Market Value of the Property (and all other costs and expenses which have been agreed) directly attributable to any changes in the Information revealed in a subsequent FCI/Terrafirma Premium Plus CON29M Report which was not revealed in the FCI/Terrafirma Premium Plus CON29M Report (“Report”) applicable to this Insurance.

“Market Value” means the value determined by an appointed RICS surveyor, such loss to be calculated at the date of the subsequent Report.

“Information” means the information in the Report compiled from the coal authority’s records:

1. The Coal Authority’s records in relation to past, present and planned underground and opencast coal-mining activity, shafts and adits (vertical and horizontal entries to mines), coal-mining geology, coal-mining related hazards, coal-mining subsidence and mine gas, as recorded in the CON29M (2018) report.

Subject to the terms of the Insurance, each Report issued for a single residential dwelling includes Insurance up to a maximum of £50,000, effective from the date of issue of the Report (“Effective Date”) until the Property is sold or, in respect of a mortgagee, until the debt secured by the mortgage is repaid.

The Insurance applies only to the Purchaser, being:

1.     the person who asked for the Report (and the mortgagee) in connection with purchase of the Property

2.     the person who purchased the Property (and the mortgagee) if the person selling the Property has asked for a Report for the benefit of the Purchaser as part of a seller’s pack or if the Property has been purchased by way of auction.

3.     the owner of the Property (and the mortgagee) if the Property is being re-mortgaged or the owner of the Property who has chosen to obtain a Report.

4.     The Purchaser’s estate and beneficiaries, to whom the benefit of the Policy will pass in the event of the Purchaser’s death during the Period of Insurance.

The Insurance is not applicable:

1.     if at the date of the claim, the Purchaser is not the legal or beneficial owner of the Property.

2.     if the Property is not a single private home in the United Kingdom which is used only for residential purposes.

3.     in relation to loss of a transaction for the sale or for the purchase of the Property nor for any costs incurred in relation to the loss of such transaction.

4.     in respect of structural or other physical damage caused to the Property by subsidence or flooding.

5.     as a result of any change in Information in response to – future underground coal mining and– future opencast coal mining.

6.     if the Information in any subsequent Report after the Effective Date also appears on the attached Report.

7.     to any problem revealed by the first Report after the Effective Date if the Purchaser or their legal representative knew about the problem on or before the Effective Date.

8.     to any change to the CON29M (2018) Search form and/or the Report made after the Effective Date which affects the Insurer’s responsibility under this Policy, if the Insurer would not have been responsible for the loss before such change.

9.     to any change in the interpretation of Information upon which the Report was produced, provided such Information remains unchanged.

The Insurer will not be responsible for any loss for which The Coal Authority may be required to pay by law.


1.     If the Purchaser receives information about any claim, loss or incident for which the Insurer may be responsible under this Policy, the Purchaser must contact the Insurer as soon as possible.

2.     If there is any claim under this Policy which is also covered by any other insurance, the Insurer will pay no more than their rateable proportion of the loss and any costs and expenses connected with it.

3.     The Purchaser agrees to do and permit to be done all things that the Insurer considers necessary to minimise loss under the Policy. The Insurer will be responsible for any expense incurred in complying with this Condition.

4.     The Purchaser must not make any offer promise or payment or incur any costs or expenses unless the Insurer has agreed in writing to cover such costs and expenses.

5.     If there is a claim under the Insurance, the Insurer has the right to instruct a Surveyor to assess the Market Value of the Property.

6.     Where the Insurer has accepted a claim and there is disagreement over the amount to be paid, the dispute can be referred to an agreed arbitrator (or in the absence of an agreement an arbitrator appointed by the President of the Chartered Institute of Arbitrators) in accordance with the law at the time.

ERGO Versicherung AG, UK Branch is wholly owned by Munich Re and is covered by the Financial Services Compensation Scheme.


Terrafirma Terms & Conditions

Should you wish to view Terrafirma Terms and Conditions - please click here

They relate to the CON29M element only of the FCI/Terrafirma Premium Plus CON29M Report and provide a limit of liability per report of £10 million, backed by Professional Indemnity Insurance. The details of which are available on request.


Notice of Statutory Cover

In the unlikely event of any future damage, the terms of the Coal Mining Subsidence Act 1991 (as amended by the Coal Industry Act 1994) apply*, and the Coal Authority / Licensee has a duty to take remedial action in respect of subsidence caused by the withdrawal of support from land and/or property in connection with lawful coal-mining operations. Typically, these actions will not need to involve either your insurance company or mortgage lender and therefore the end user(s) should not incur any costs or liability. *Note: this Act does not apply where coal was worked or gotten by virtue of the grant of a gale in the Forest of Dean, or any other part of the Hundred of St. Briavels in the county of Gloucester.

In addition to the above, it should also be noted that the Coal Authority offer a Public Safety and Subsidence Department that provides a 24-hour 7 day a week call out service (Tel: 01623 646 333) to take remedial action in respect of hazards associated with the movement or collapse of any coal mineshaft or entrances to coal mines and from other coal mining related surface hazards. Further information can be found on their website:


Further Information


Should you have any further information regarding the Terrafirma CON29M - please visit our dedicated page at:


For further information about Terrafirma, including our full range of products and services, please our homepage at:

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Both Terrafirma and FCI are subscribers to the Search Code. For further information about Terrafirma and the Search Code, please click here.