What Does Latency Defect Warranty Cover?


At its essence, a latent defect warranty is a type of insurance policy that relates to a building that has recently been built, converted, extensively renovated or extended. It covers the owner of the property (and any subsequent owners within the warranty period) for serious structural problems that might come to light in the first few years after the project has been completed.

There are three main areas that a latent defect warranty will cover, and these are:

Defects that result from design errors

Mistakes made with the design of the building that cause it to be unsafe can be very serious and may even require the property to the demolished and rebuilt. A latent defect warranty is there for this eventuality and the policy can pay out an amount up to the full rebuild costs, depending on the specifics of the cover.

Defects that result from poor workmanship

Whether it’s mistakes made by contractors or simply poor quality workmanship during the construction project, this can sometimes result in serious structural faults that can be very costly and disruptive to rectify. The structural defect warranty will pay out for this work to be done.

Defects that result from poor quality or incorrect materials being used in the build

The materials used for any construction project are very important and can have a huge impact on the structural integrity of the building. If the contractors get this wrong and either use materials that aren’t of the required standard, or use the wrong materials altogether, this can have serious consequences and cause defects in the property which need to be fixed. Again, the structural defect warranty will pay out so that this can be done.

A latent defect warranty provides peace of mind for the property owner, but is also required by lenders before they will approve a mortgage on a property that has had this kind of structural work done or been built in the last 10 years. Contact us to find out more about structural defect warranties or to get a quote for your project.

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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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