Latent Defects / Structural Warranty
On completion of a new building, defects can sometimes be discovered, such as damage due to poor design, inadequate workmanship or faulty materials. These problems may not become apparent for a number of years…
Whether you’re a developer, financier, owner or commercial occupier, defects range from the irritating to the catastrophic, and their impact on your business and reputation can be severe. It makes good commercial sense to mitigate the risk with latent defects insurance. A range of factors has highlighted why you should consider this type of insurance:
- Declining quality of raw materials, such as iron pyrites in roof tiles
- Sustainable materials such as green oak frames or cladding, and sedum roofs
- Innovative materials such as solar panels, or ground/air source heating
- Large numbers of contractors becoming insolvent
- Mortgage providers tightening their lending criteria
- An increase in home improvements such as basements, extensions, and loft conversions
- Structural repairs following insurance claims for subsidence, fire, impact, or earthquakes.
We have the proven expertise and in-depth knowledge that enables us to deliver a superior level of latent defects cover that fills the gaps others may leave behind. Latent defects insurance provides a cost effective, high performance alternative to collateral warranties across a diverse range of residential, mixed and commercial new builds.
Main policy features *
- Residential property – Council of Mortgage Lender approved warranties are available with cover for 10+ years, extendable to include component failure, extensions, alterations and where work has already begun. Cover includes self-builds, barn conversions and where the contractor, developer or architect goes into liquidation or has failed to take out a warranty
- Commercial property – We can arrange bespoke latent defects cover on almost any type of commercial property including extensions or alterations, where construction is already underway or where the contractor, developer or architect has gone into liquidation
- Mixed retail and residential – All the features you expect plus Council of Mortgage Lender approved warranties on residential sections, and latent defects cover on the commercial parts of your property
- Mechanical and electrical – covering defective plant or machinery, lifts and escalators, window-cleaning equipment, and environmental, electrical and water pumping control systems as well as electrical distribution systems. Cover can be put in place for up to 12 years following practical completion
- Insurance-backed guarantees
- Typical exclusions include damage discovered outside the period of insurance, anticipated or planned-for movement, settlement, shrinkage or expansion, abnormal use or overloading, wear and tear or inadequate maintenance, change in colour or ageing process, contractor’s contractual obligations for snagging and damage to paint and other surface coatings.
* This information is a general guide only. Adler Fairways will assess your requirements and recommend a bespoke range of insurance solutions to meet your needs. As part of the quotation process, we will provide full details of the specific coverage, benefits, limits, premiums, exclusions, excesses payable, and any other policy conditions that would apply to the insurance we recommend for you. We currently only offer cover to businesses registered in England, Scotland, Wales, Northern Ireland, the Channel Islands and the Isle of Man.
Words from our clients…
"Over the last eight years we have continued to renew our cover through Adler Fairways, we consider them a partner of our wider business on the growth trajectory to being a 100 million pound business. Having guided us from a small start up to where we are today, their guidance and level of experience have been invaluable in ensuring we are covered in all aspects of our liabilities. This has allowed us to focus on growth and margins. Thank you Adler Fairways as we move forward together into the future."
"Adler Fairways have taken care of our insurance needs for many years, during which time we have built a strong relationship. We have come to depend on their expertise and know we can always rely on them."
"We transferred our insurance to Adler Fairways Insurance Brokers in 2023, when they offered us a much more complete and competitive premium than our current brokers. The team took the time to understand our business and future needs; we have continued to receive excellent service from them, and have been impressed with their care, and attention to detail. What is key for our business is the advice that is given when needed, and the robust claims management internally which has helped manage our premiums for a traditionally difficult to insure niche sector of the motor trade."
"We have been with Adler Fairways for a number of years now and remain with them for the personal service we receive together with commercially competitive premiums and the knowledge that when a claim does arise, professional assistance is always to hand."
"The Adler Fairways team has looked after our insurance portfolio for several years now and have provided excellent service throughout. Our annual renewal reviews are always conducted in good time ahead of renewal with all our questions answered and we are extremely impressed with the renewal proposals received. Prior to moving our business to Adler Fairways, we had not received a proper review for several years. The team were instrumental in making sure our insurance was arranged on the correct basis and have also been able to save us money on our premiums over the years. It is clear that they have our best interests at heart, both from an insurance cover and premium perspective. Whenever we have a query or need to make a change to our policies, it is dealt with efficiently and professionally. We can’t fault them on their reliability and excellent personal service".
"As a scaffold company operating within the construction industry, it is crucial for us to have a reliable and experienced insurance broker by our side. Adler Fairways has been a trusted partner to us for over 15 years and we couldn’t be more satisfied with their exceptional service. From the beginning, they demonstrated a deep understanding of the unique risks we face as a scaffold business and worked with us to ensure we’re always fully protected onsite. We have peace of mind in their ability to source comprehensive, industry-specific coverage at competitive rates which is a huge benefit to our operations. The fact that Adler Fairways is a Chartered insurance brokerage also demonstrates their ongoing commitment within their profession."
"The Adler Fairways team has been an invaluable partner to our digital out-of-home (DOOH) advertising business, particularly during times when we needed their support, expertise and advice. Their exceptional responsiveness and commitment have truly set them apart.
In our industry, where we manage a network of digital displays and complex advertising campaigns, the risk landscape is unique and often unpredictable. Whether it’s damage to equipment, public liability, motor or unforeseen technical issues, Adler Fairways has consistently provided us with bespoke insurance policies that give us confidence in our coverage.
Whatever our needs are, Adler Fairways are always there to guide us every step of the way and the team handles everything with remarkable efficiency, providing clear communication and expert advice throughout the process. The personal touch and attention to detail they always provide makes sometimes stressful situations much easier to navigate."
