David,

I reckon you have just about already arrived at the right conclusion ie. You cannot provide the level of reassurance the client needs.

You have no doubt in writing already directed your client to check the detailed terms of such an insurance policy before purchase e.g. the reliability and transferability of any such defect insurance onto your client’s legal team to check and advise upon.

The resale value is outside of a survey report but my personal opinion is that you are right to caution your client in your survey report of the consequences i.e. that it may be detrimentally affected if the insurance policy is questionable.

KR

Ian V.