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Latent Defects Insurance
Our dedicated team can arrange Latent Defects Insurance to cover repair costs for residential and commercial developments.
What is Latent Defects Insurance?
Latent Defects Insurance is a structural warranty that provides cover for a property against structural faults in a new home or commercial premises. Often not covered under the standard buildings insurance policy, latent defects can help cover the cost of repairing structural issues and pays for rebuilding a structure if it becomes uninhabitable or is deemed unfit for its intended purpose.
Latent defects policies can include additional cover for demolition and debris removal, mechanical or electrical faults, alternative accommodation for residents, building control services, and contamination cover.
These policies typically remain valid for 10 to 12 years after a building’s completion and can be transferred to new owners if the property is sold. Whether work on a property is about to start, is partially constructed, or has been completed, then our specialist team can help you find the right warranty insurance solution to meet your requirements.
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What does Latent Defects Insurance cover?
Latent Defects Insurance can provide cover for:
- Structural defects.
- Ingress of water.
- Threat of collapse requiring remedial works to prevent damage caused by a defect in design, materials or workmanship.
- The costs of demolition to allow for potential rebuilding.
- The cost of providing alternative accommodation during the time of repair.
- Loss of rent, gross profit, or revenue.
- The increased cost of working from alternative premises.
- Mechanical or component failure.
- Damage to mechanical or electrical services.
Why use Jensten
Dedicated
A dedicated team supporting construction business
Trusted
We are the trusted broker to construction and contracting trades
Flexibility
Tailored insurance to the needs of your business
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Our team of UK-based insurance experts are here to help, Monday – Friday, 9am – 5pm.
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- 0808 239 2989
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Council of Mortgage Lenders
One area to be aware of when purchasing Latent Defects Insurance is to look at insurers who are on the Council of Mortgage Lenders.
Insurers must go through a stringent process to be placed on the list. The importance is when a warranty is taken out on a development; if that warranty isn’t accepted by the lender, then any future buyers wanting a mortgage can run into issues.
Jensten Insurance Brokers can advise you on which insurers are on the Council of Mortgage Lenders when arranging your policy. Get in touch with our specialist team to find out more.
Who needs Latent Defects Insurance?
Latent defects are suitable for a number of different developments, including new builds, extensions, and conversions of commercial buildings to residential use.
This type of policy can apply to anyone building or selling commercial or residential new builds, including:
- Architects
- Self-builders
- Property developers
- Social housing
- Registered social landlords
- Conveyancing solicitors
- Property owners
- Construction firms
- Contractors
- Mortgage lenders
For some tailored insurance help, please contact the Jensten Motor Trade team today or call them on 0208 298 2100.
Need Latent Defects Insurance?
For comprehensive Latent Defects Insurance
Latent Defects Insurance
This can be a complex area of cover, so to help you get the protection you need, here are our frequently asked questions about Latent Defects Insurance. We hope they will help, but if you’d like some independent advice, please call us on 0808 239 2989, and we’ll be on hand to help.
What is the latent defect warranty period?
The latent defect warranty period typically starts from the date of a building’s practical completion and usually lasts for 10 to 12 years. This warranty against latent defects provides long-term protection for property owners by covering structural faults that may only become apparent years after construction. Importantly, the latent defect warranty can be transferred to future owners if the property is sold, ensuring ongoing protection and peace of mind.
Why arrange latent defects insurance through a broker?
Arranging latent defects insurance through a specialist broker is highly beneficial. Brokers have access to a wide range of insurers in the latent defects insurance UK market and can compare policies tailored to your specific needs, whether for residential or commercial construction projects. They can help you navigate the complexities of latent defects insurance construction cover and find the right warranty against latent defects at a competitive latent defects insurance cost. Contact one of our specialists today to discuss how they can support you and your business.
What is latent defects insurance residential cover?
Latent defects insurance residential policies provide protection for new home builds, extensions, or conversions against hidden structural faults that may not be visible at the time of purchase or completion. This insurance is often a requirement by mortgage lenders in the UK and Ireland to protect potential buyers and property owners from extremely expensive repairs caused by design, workmanship, or material defects that appear after practical completion.
How does latent defects insurance construction coverage work?
Latent defects insurance construction policies cover the costs of repairing or rebuilding structural defects that arise due to construction faults, faulty materials, or poor workmanship during the construction process. This insurance not only protects property developers and builders but also offers balance sheet protection by reducing the financial risk associated with major damage to the building’s structure. Coverage can extend to non-structural elements such as mechanical and electrical services, waterproofing envelopes, and business interruption losses.
Is latent defects insurance available in Ireland?
Yes, latent defects insurance Ireland is available and provides similar protection as in the UK market. It covers residential and commercial new builds, conversions, and mixed-use developments against latent defects that may surface after construction completion. The policies typically last 10 to 12 years and are essential for self-build projects, housing associations, and private rental sector landlords to ensure the right cover is in place.
What factors influence latent defects insurance cost?
The latent defects insurance cost depends on several factors including the type and size of the construction project, the rebuild value of the property, the materials used, and the experience of the professional team involved. Other considerations include whether the project is residential or commercial, the complexity of the design, and any additional coverage for mechanical and electrical defects or business interruption. A specialist broker can help you obtain the right latent defects insurance policy at the best possible cost.
What is the difference between a latent defect warranty and a structural warranty?
A latent defect warranty is a type of structural warranty specifically designed to cover hidden defects in the building’s structure that may not be immediately apparent. Structural warranties, sometimes called home warranties or building warranties, can cover a broader range of issues including component failure and non-structural elements. Both provide essential protection for property owners, developers, and potential buyers against construction faults and defects over a long period following practical completion.
Who needs latent defects insurance?
Latent defects insurance is essential for property developers, self-builders, housing associations, contractors, and property owners involved in new builds, extensions, or conversions. It is often required by mortgage lenders in the UK and Ireland for residential properties and is highly recommended for mixed-use developments and commercial buildings. This insurance offers first party cover that protects against major damage without requiring proof of negligence or liability, making it a critical part of risk management in construction projects.