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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.
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.
What are the key advantages of latent defects insurance?
Latent defects insurance offers several significant benefits. It eliminates the need to prove negligence or establish fault, protecting buyers from potential disputes with developers or contractors. This coverage also safeguards against financial losses due to developer or contractor insolvency. Additionally, it enhances the saleability of the property, as potential buyers are more likely to be interested in a property with such protection. The cover is freely assignable, allowing it to be passed on to future owners without restrictions. This eliminates time-consuming and costly legal proceedings, ensuring that funds are readily available for repairs, thereby minimising disruptions and potential business losses.
Frequently asked questions
This insurance is not compulsory or a legal requirement, however, mortgage lenders do require your project to have it in place before approving funding.
A latent defect or structural defect is a material problem that leads to a physical issue or damage to a building or property.
Anyone that is looking to build a property or building. This may include Property developers, Housing Associations, and Independent builders.