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Latent Defects Insurance offers owners and developers, coverage from damages arising from an inherent or latent defect in the building.  

 The policy is generally available for a period of 10 to 12 years from the date of issue of final certificate of practical completion. The insured can be any party who has an interest in the property (normally the owner or developer) and can be required by funders or incoming tenants with an obligation to repair under the terms of a lease agreement. 

Latent Defects Insurance provides essential protection if you’re a homeowner who has undertaken a self-build or even added an extension to an existing property, as most defects tend to become evident a few years after the development has been completed, so it could be possible, due to economic circumstances, that the contractor is no longer in business when you need to make a claim. 

Latent Defects Insurance protects against the potential cost of rebuilding and rectifying any defects that arise and are required to protect against defects in newly built or converted and refurbished residential developments, as well as the following: 

• Commercial or domestic properties 
• New builds or conversions 
• Renovations or extensions 
• Self-build constructions 

These can include private or social housing, elderly or student accommodation, business premises, and public sector buildings. Essentially, any type of newly built or altered structure can benefit from latent defects insurance, because it covers the quality and safety of its structural elements. 

It’s not a legal requirement, although all mortgage lenders require it to be in place before they will lend money against a property.  

Even if you have no intention of selling your home, the skilled insight of our inspectors helps quickly identify any problem areas. In addition, indemnity protects you from exposure to a costly risks. 

It’s normally 10-years from completion of the property. 

A PCC is a certificate of compliance, which provides an option of 6 or 10 years of cover as approved by the CML/UK Finance on behalf of the Lenders. The Professional Consultant must only issue the certificate when they are satisfied the building has been built to an approved standard.
Latent Defect Insurance is an insurance-backed product, which is often underwritten by large insurance brokers, and they usually come with 10 years’ cover. Like all insurance products, they come with a 2-year defect liability period for the developer and a host of conditions.
In terms of build quality, generally, we only require properties to be constructed to current UK building regulations standards, whereas Latent Defect Insurance providers often require a much higher standard of construction.
With all of the above, a PCC is a much more cost-effective option for providing mortgage ready certification for newly built properties.

Once you have planning permission and before you start work, we advise that you arrange the warranty and have it in place two to four weeks before works start. It’s important to contact us straight away once you know the exact start date for the project to get a quote and the right coverage beforehand. 

Latent Defects policy will be tailored to the unique circumstances of the project or building, the cost will vary. 

Factors that can affect the cost of latent defects insurance include (but are not limited to): 

• Number, size, and type of building/s. 
• Experience level of main contractor/developer. 
• Construction methods and materials being used. 
• Rebuild value of the property (sum insured). 

Through a combination of meticulously compiled structural engineers reports and careful financial assessment. 

If you are building an extension, you may not need a warranty but you will need to comply with building regulations to ensure the property is structurally sound. It is always recommended to speak to us, depending on the type of extension, in order to make sure you have the right coverage before work is started on site. 

Remedies for defects should be sought from the builder or contractor if discovered in the first 24 months following the completion of the services.

A professional consultant who carries professional indemnity insurance for the six-year or 10-year life span of the certificate administers your certificate. Our professional consultants are underwritten by one of the UK’s largest insurers, so we do not anticipate any issues regarding insurance. In the event they cease practicing or ‘retire’, they are required by the CML/UK Finance to maintain insurance run-off cover ensuring that all the certificates issued are covered for their life span.

We are insured up to £5 million for each and every claim.

Yes. Each certificate is issued with a copy of the insurance. If you would like to see a copy before order, please speak with a member of our support staff who can help.

Yes. If you would like to see a copy before ordering, please speak with a member of our support staff who can help.

If there is any damage to the building as a consequence of an inherent defect in the design, workmanship or materials in the structure of your building, latent defects insurance can provide you with cover.   

This policy Cover is generally available for 10 or 12 years after the buildings practical completion. It covers the repair or reinstatement costs if damage is discovered resulting from faulty design, construction work, or building materials.  

Latent defects insurance will usually cover the following elements: 

• 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. 

A latent defects warranty will only cover structural defects that are not found during initial surveys and do not become apparent until months or years after completion of the building. This means that the policy will not cover the costs for damage resulting from: 

• Known defects or defects discovered prior to taking out the policy. 
• Abnormal use of the building or inadequate maintenance. 
• Non-approved alterations to the building (e.g. extensions). 
• Normal wear and tear (e.g. changes in colour due to ageing). 
• Accidental damage, weather damage, vandalism, arson etc. 

Latent defects insurance usually will not apply to anything that hasn’t been signed off under the technical audits that take place as part of the warranty process.