This is an insurance policy designed to cover the costs of making good faulty workmanship, materials, or damages discovered in residential, commercial and industrial properties after construction or extension works are completed – sometimes years later. Latent defects insurance policies are also known as Structural Warranties, New Home Warranties and Latent Defect Warranties.
What does a latent defect insurance policy or warranty cover?
Policies can cover the costs of rectifying faults or defects found in the property after you start your policy / warranty. Cover normally lasts for periods of between 10 and 25 years. Most policies will normally include, as standard:
- Professional fees (architects, surveyors, legal, etc)
- Damage caused by structural defects
- Damage caused by ingress of water
- Remedial works to prevent further damage or collapse.
Why else might you need latent defects insurance or warranties?
- The policy can cover you even if the contractor at fault is no longer trading
- Mortgage providers and lenders often require evidence of cover – these types of defect are usually excluded by standard property policies
- The policy can be assigned to or passed on to any future owner of the property, making it easier to sell
- Cover can be provided before construction starts, during a contract, or retrospectively once construction is complete.
Who should consider latent defects insurance?
- Builders
- Developers
- Home owners
- Lenders
- Housing associations
- Landlords
- Property owners
- Leaseholders
- Tenants.
What other insurances does Sutcliffe & Co provide that might help?
- Buildings, Property & Contents insurance
- Contract Works & Contractors All Risks insurance
- Bonds
- Non Negligence JCT 21.2.1 / 6.5.1 Insurance
- Liability insurance including land liability
- Professional indemnity, including design & build
- Legal Indemnity, including chancel, restrictive covenant, planning permission and lost certificate
How to get a quote for Latent Defects insurance
If you would like insurance or warranty for latent defects please call our team on 01905 21681 or email us here and we will discuss your needs.
