Latent Defects insurance (also called Building Warranty or Structural Warranty insurance) protects owners and developers of new commercial properties against damage to buildings caused by a defect in design, workmanship or materials
There are policies available for new build projects, self-build projects and completed properties.
Unlike cover under a collateral warranty, Latent Defects insurance doesn't rely on proof of negligence. Just proof of defect is needed to make a claim.
The cover may help you sell a property and is often requested by lenders when arranging finance.
Core cover includes:
- Damage caused by structural defects and ingress of water
- Remedial work to prevent possible collapse
- Costs of dismantling, moving, storing and re-erecting property
- Professional fees
Cover is for a 10 or 12-year period and policies are usually freely assignable.