Latent Defects Insurance

Latent defects are hidden structural problems in a building that haven’t yet been discovered. These faults may not be detectable through standard building surveys and can take months or even years to become apparent.

Latent defects can result from various factors related to the building’s structure, including design, construction, materials, and workmanship. Essentially, any point during the construction process can contribute to latent defects.

Latent defects insurance covers the cost of repairing structural defects and pays for rebuilding a structure if it becomes uninhabitable or unfit for its purpose. Policies can also include additional covers such as demolition, debris removal, alternative accommodation, and more.

Latent defects insurance only covers the structural integrity of a building and its load-bearing capability. It does not address issues with fixtures, fittings, plumbing, heating systems, or other non-structural elements.

Latent Defects Insurance is particularly suitable for new-build properties, extensions, and conversions of commercial buildings to residential use. It’s essential for anyone involved in building or selling commercial spaces or residential new builds, including property developers and construction firms.