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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…

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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 propertyWe 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…