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Latent Defects Insurance - what is it?
Latent defect insurance . .what is it?
Latent defects insurance is a form of cover incepted typically with regards to newly built residential and commercial buildings and provides cover in the event of a defect in the workmanship, design, or materials becoming apparent after completion.
It protects the insured (which can be transferred to new owners) for the agreed sum insured which is typically the full reinstatement value at time of quoting and is typically available for 10 to 12 years from the date of practical completion or final certificate being issued.
Any party who has an interest in the property can be the insured such as the builder / developer and then subsequently the owner. But it can also be the funder or an tenant who has an obligation to repair under a lease agreement.
What does Latent Defects Insurance offer?
Latent Defects Insurance will provide a single avenue though which you can recover the costs of replacing, strengthening, repairing the building following the recording of latent defects that has or will cause damage / possibly even destruction of the premises.
- A Latent Defects Insurance policy will continue to provide protection should a Builder, Developer or Contractor go bust.
- It is typically a requirement before funds are released by a lender.
- UK Finance (formerly the Council of Mortgage Lenders will require sight of a certificate before allowing a property purchase with a mortgage.
- First Party Cover basis therefore NO legal disputes! Meaning you are protected from the defects and do not have to wait for any legal action to recover costs from developers etc.
- Transferable to Future Owners – Should you the developer, builder or even home owner sell the policy can be transferred to the future owner and cover will continue for the remaining duration.
For all of your Structural Warranty and Insurance needs please complete the Enquiry Form above or contact us during normal business hours on 02476 437638.
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