Quick Guide to Structural Defects Insurance


Structural defects insurance, also sometimes called latent defects insurance, is a type of policy that covers properties which have been newly built, converted or renovated. It protects against the event of serious structural defects coming to light in the first few years after completion.

The developer will usually be the party to take out structural defects insurance, as they could otherwise be liable for a claim made against them by the property’s new owner if a structural defect is found that was due to issues with the construction.

Structural defects insurance is essentially a warranty that covers the property for a certain period of time, usually for 10 years after the construction phase was completed. If the property is going to be sold once finished, mortgage lenders will need structural defects insurance, also called a structural warranty, to be in place for them to lend on it to a potential buyer.

While structural defects in most newly built or recently renovated properties are rare, sometimes they can arise. This could include issues such as:

  • Design faults that cause structural problems
  • Using inferior or incorrect materials for the job, resulting in structural problems
  • Poor workmanship or errors made during construction

The structural defects insurance is there to cover the costs of repairs or even rebuilding the property if serious defects are found. In order for the insurance to be claimed, any issues need to have NOT been discovered during any of the inspections and checks conducted during the construction process, right up to the point of completion.

Structural defects insurance policies usually last for 10 years, after which points there cannot be a claim if a major structural defect comes to light. If the property is sold during this period of time, the policy is usually transferred to the new owner, so they benefit from peace of mind for the rest of the policy term. We offer specialist structural defects insurance that can be tailored to your needs. Get in touch to find out more.

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Advantage Home Construction Insurance (AHCI) provides structural defects insurance – operating nationally with offices in Warrington, London and Birmingham – offering development-related insurances and a service designed to give customers peace of mind.

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