Latent Defect Insurance

Latent Defect Insurance (LDI) 

Also refered to as a Structural Warranty Insurance covers repairs to properties as a result of faulty design, faulty workmanship, defects or material problems in new build and renovated properties discovered after the completion of the construction process.

Residential Latent Defects Insurance 

A 10 year structural warranty indemnifies the owner of a residential property from the damage caused by latent defects that occur following the practical completion of the build.

Commercial Latent Defects Insurance 

Commercial Latent Defect Insurance provides an added and essential element of protection to the owner of a commercial property. This is essentially the same as LDI for residential properties however the policy term and coverage can generally be more bespoke to suit the requirements of the client and lender.

Retrospective Structural Warranty

We can offer a Retrospective Warranty for dvelopers and home owners who have either failed to take one prior to construction or did not need one but now require one to raise finance or sell the property.

When it comes to the provision of Latent Defect Insurance, you are in the right hands.

We can provide cover for all warranties including:

• Commercial property
• Residential houses including conversations/ refurbishments
• Self-build warranties
• Retrospective warranties for completed houses
• Building Control
• Also, more niche warranties for insolvencies and social housing.

Call our specialist team now to discuss your requirements 02476 017646

what is Latent Defect Insurance (LDI)?

Latent Defect Insurance (LDI), also referred to as Structural Warranty Insurance will be required if the premises that has been developed is to be sold on as lenders will insist there is one in place in order to provide finance. Additionally, this removes the risk of financial stress as the warranty covers the costs involved in the correction of the defect.

What Does A Structural Warranty Policy Cover?

The policy covers faulty design, workmanship or material problems or defects for up to a period of 12 years after practical completion, they are designed to cover the costs incurred to rebuild or rectify the property whether partially or in full. Unlike other policies such as Architect’s Certificates, Collateral Warranties and Professional Indemnity Insurance, a Latent Defect Insurance policy does not require proof of fault, just proof of a defect.

Cover Includes:

• Cover of the structural integrity of basements and car parks
• Cover against contaminated land
• Alternative accommodation,
• Additional costs
• Professional fees
• Removal of debris
• Ingress of Water

Things to Consider When undertaking a project

Both Developers and Contractors need to consider not only the requirements of the Council of Mortgage Lenders (CML) but that of their own exposure in these challenging times. Ask yourself what you would do if a defect was identified and the contractor employed to carry out the work was no longer trading, you would be liable to rectify the structural damage caused by defects or negligence and this could prove costly and cause undue stress even years after the project has been completed. Latent Defect Insurance is the most cost effective way of protecting your investment.

How Can We Help

Here at SB&G we have access to numerous leading insurers and exclusive schemes, so we are able to offer the most comprehensive quote to fit your requirements.

We can provide cover for all warranties including:

• Commercial property
• Residential houses including conversations/ refurbishments
• Self-build warranties
• Retrospective warranties for completed houses
• Building Control
• Also, more niche warranties for insolvencies and social housing.

Speak to one of our Specialist Team today on 02476 017646