Latent Defects Insurance2017-12-13T18:37:32+00:00

Latent Defects Insurance

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Latent Defects Insurance

BJP Insurance Brokers provide insurance advice and solutions to all kinds of entities including property owners. You may want to protect your buildings from issues through latent defects insurance.

Latent defects are effectively issues that may not be discovered even where a reasonably comprehensive survey of the building has been undertaken.

What is Latent Defects Insurance?

When an individual or company buys a building, the hope is that it is soundly constructed. However, this is not always the case – and defects can show up, sometimes dramatically, years or even decades later.

Legally speaking, the liability for such defects generally falls on the contractor who was responsible for the construction. However, this liability is often costly, difficult and time-consuming to establish due to a number of factors, such as multiple subcontractors, dissolved companies and slow legal mechanisms.

Latent Defects Insurance gives the property owner the option of claiming for the cost of the damage directly from the insurer, cutting out the inevitable expense caused by delay.

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Latent Defects Insurance

Post-build cover for property defects

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Who needs Latent Defects Insurance?

Latent Defects Insurance is a wise investment for any business or individual who purchases a property of any kind – whether commercial or residential, and for any end use – for example, private enjoyment or commercial lets.

Sadly, problems arising from latent construction defects are not uncommon, and can have serious consequences for property owners just at the time when they were expecting to see a return on their investment.

Even though in most cases the owner could theoretically prosecute the constructor for the latent damage, in practice this often involves insurmountable obstacles – and in the meantime, the damage can have a knock-on effect (e.g. loss of rental income), costing the owner even more time and money.

Latent Defects Insurance came into being to provide rapid payouts for property owners in this tricky position.

Impartial advice, fast quotes

Talk to our broking team today about Latent Defects insurance

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What kind of damage does Latent Defects Insurance protect against?

Defects can arise in almost any area of construction – which is why blame is so difficult to establish. They could occur in either the design or construction phase of the project, and they could be attributed to an individual subcontractor or various different subcontractors.

Examples of Latent Defects Claims

House nearly collapses due to unsound foundations

The owner of a house noticed cracks in the walls that seemed to get worse over time. The problem was checked by his insurer, proving that faults in the construction of the foundation had led to differential settlement, putting the house at risk of collapse.

Result: Fortunately, the owner of the house held Latent Defects Insurance, meaning that his insurer paid out the large sum needed to correct the problem.

Failure to seal foundation wall leads to basement flooding

The constructor of a block of flats failed to ensure that a foundation wall was insulated to make it impermeable. Over time, rainwater seeped through the adjacent soil into the wall, weakening it to the extent that it cracked. During a particularly wet spring, the basement of the building flooded, causing thousands of pounds worth of damage to residents’ vehicles.

Result: If the owner had had Latent Defects Insurance in place, she could have claimed the expense directly from her insurer, rather than chasing the contractor through the courts – a lengthy and frustrating experience.

Wall collapsed due to failed piling

The foundation timber of a granny flat was inadequately treated by the constructor. This led to an unacceptable degree of settlement, which over time weakened the structure of the building and eventually caused a wall to collapse.

Result: The property owner had Latent Defects Insurance in place, and was able to claim for the cost of the damage from her insurer, solving the problem much more quickly than if she had sued the constructor.