What is Latent Defects Insurance?

Also called structural defects, to protect owner builders, home owners residential and commercial builders, developers and Body Corporate in the event that an unforeseen structural defect occurs after practical completion of the building. Available to cover new homes, renovations and extensions, apartments, office and commercial buildings.

Why should I take Latent Defect Insurance?

Recent high profile cases regarding structural defects associated with the some buildings have highlighted the necessity of a policy to protect owners from unforeseen structural defects that will have a major effect on the liveability and the value of their building.

Under Consumer law, builders are liable for up to 10 years implied warranty. Latent defect insurance solves this problem in the event of a structural defect occurring.

Now developers, homeowners, residential and commercial builders have the protection of a 10-year latent defect insurance policy to ensure their financial security in the event of a structural defect occurring in the future.

How does it work?

 Latent defect insurance is designed to protect clients against physical damage or destruction of property caused by an inherent defect that includes waterproofing and weatherproofing.

Advantages of the product

• 10-year non-cancellable policy.
• Transferrable to future owners.
• Owner developer builder protected.
• Insurer (Lloyds) fixes the defect.
• No delays over remedial work.
• No delays over whose fault.
• No doubt about Lloyd’s ability to pay.
• Asset protection.
• Avoid delays due to litigation.
• Increase Asset value by having insurance protection.
• Where rights of recovery exist, it’s at the insurers’ expense not the Owner or Builder.