Latent defects insurance

Why do you need latent defects insurance?

When other parties such as your contractors or professional advisers may not have adequate professional indemnity cover, or may no longer be trading, your warranties can be rendered worthless. 

Latent defects insurance fills this gap in standard property insurance policies, by covering the physical damage to the property, undiscovered at the date of practical completion.

  • Cover does not rely on proof of fault or negligence, just proof of defect
  • The policy is assignable to future owners/tenants/funders
  • Although we recommend purchasing cover prior to the commencement of the construction project, some insurers are willing to provide cover on partially completed and/or completed structures. However, premiums will be higher.

How our construction insurance brokers can help

As construction insurance brokers, we have over 25 years' involvement in the construction insurance industry. Using this expert knowledge coupled with our commitment to the very best standards of customer service, we draw upon a range of insurances to build bespoke annual construction site insurance solutions for clients across the industry. We work with you to understand your business and tailor an insurance solution to your unique needs, mitigating the impact of construction risks.

Who purchases latent defects insurance?

Property owners

Latent defects insurance, what's included?

  • Structural defects
  • Ingress of water (excluded for the first 12 months)
  • Threat of imminent collapse requiring remedial works to prevent damage caused by a defect in design, materials or workmanship

In the event of a structural claim, additional areas of construction insurance cover can include:

  • The costs of demolition to allow rebuilding
  • The cost of providing alternative accommodation during the period of the reconstruction or repair.
  • Loss of rent/loss of gross profit or revenue/increased cost of working from alternative premises 
  • Damage to mechanical and electrical services
  • Mechanical and/or component failure