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Latent Defects

Latent Defects insurance cover is essential for housing developers, property owners and tenants of residential, commercial and mixed-use building developments around the UK.

Latent Defects Insurance is put in place to provide cover for the cost of rectifying or repairing structural damage caused by a fault in the design, construction or materials of a new build, conversion or completed building project that may not be apparent at the time of practical completion.

The best time to take advantage of latent defects insurance is at the start of a construction project, and the policy can run through the build process and then last for 10 or 12 years if under seal.

Key Advantages of Latent Defect Cover;

  • No need to establish who is at fault or prove negligence
  • Protects against developer/contractor insolvency
  • Allows for the easier future sale of the property
  • The cover is freely assignable and can be passed on to prospective owners
  • No restrictions to the number of assignments
  • Eliminates time delays and legal costs associated with legal proceedings
  • Funds are immediately available for repairs minimising interruption and loss of potential business

Latent Defects Insurance vs Collateral Warranties

Not all parties involved in a new build project are included in the collateral warranties. This means that if a defect is found to be the responsibility of a sub-contractor or company that has not been included in the warranties, there is not a right of recourse against them. Therefore, the defect would need to be repaired at the current owner’s expense.

If the party who gave the warranties ceased trading, those warranties would become invalid. As collateral warranties are backed by professional indemnity insurance, following insolvency, in general, the policy would lapse, and there would be no cover for any potential claim.

Latent Defects Insurance providers

There is an excellent range of latent defects insurance providers. However, our experts only work with the most renowned and reliable providers in the UK. With over 50 years of experience in the insurance broker industry, you know you can trust us to advise you in the right direction.


Do you need to have latent defects insurance?

This insurance is not compulsory or a legal requirement, however, mortgage lenders do require your project to have it in place before approving funding.

What’s a latent defect?

A latent defect or structural defect is a material problem that leads to a physical issue or damage to a building or property.

Who needs latent defects insurance?

Anyone that is looking to build a property or building. This may include Property developers, Housing Associations, and Independent builders.



If you would like a quote for your Business or Personal Insurances, or have any questions click below to get in touch.


Waltons Insurance Brokers Limited

11th Floor, The Plaza
100 Old Hall Street
Liverpool, Merseyside
L3 9QJ

Tel: 0151 236 4488

Waltons Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority.

If you are unhappy with our service we have a complaints procedure, details of which are available on request (email: You may be able to refer a complaint to the Financial Ombudsman Service (FOS) if you are unhappy with how we deal with your complaint. The FOS website is