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Latent Defect Insurance


Inspire Insurance Services are expert brokers in the Construction and Development sector and the foremost provider of Latent Defect Insurance throughout the UK.


With access to an extensive panel of insurers we can source cover for your requirements at competitively priced premiums. When it comes to the provision of Latent Defect Insurance, you are in the right hands.


Latent Defect Insurance sometimes referred to as Structural Warranties, covers faulty design, faulty workmanship, defects or material problems and unlike many other policies it doesn’t require proof of fault, just proof of a defect.


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.


Here at Inspire 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

• Also, more niche warranties for insolvencies and social housing.


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.


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


When should I purchase?


Whilst we can offer cover retrospectively we do advise to purchase this at the beginning of a project. The warranty will require a surveyor to attend the site and sign off significant stages of the development. As you can imagine the costs involved in this process after the build has been completed are increased and as such the premium reflects this.


Speak to one of our Specialist Risks Team today on 02476 01 76 46

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