What is covered by a Latent Defects policy?
There are a range of perils that are typically covered by a Latent Defects Insurance policy. These include:
- Repairs or rebuilding costs of structural damage
- Professional fees, inc Speculative
- In-progress and completed builds
- Cover for structure plus the waterproofing envelope
- Loss of rent
Latent Defects policies do vary in terms of the level of indemnity cover available for any given peril – that is, the maximum amount that a policy will pay out in the event of a claim. To ensure that you have adequate protection in place, it’s worth taking a professional opinion.
Who needs to buy this type of cover?
Latent Defects Insurance can be bought by anyone who has an interest in a project. A policy can be applied for with regard to a wide range of building development projects:
- New builds
- Residential, commercial and mixed-use developments
- Individual homeowners
- National developers.
Recognising the wide range of individuals and businesses who may benefit from having Latent Defects Insurance, policies are available where project values range from £100,000 to £100 million.