Latent Defects Insurance (LDI) provides cover for the cost of rectifying or repairing structural damage caused by a fault in the design, construction or materials of a new build, conversion or completed build project. Rectification costs can either include part or full reinstatement value of the property.

A 'latent' or ‘inherent' defect may not be apparent at the time of practical completion but may in fact come to light several years later. Our specialist policies provide cover against latent defects for a period of up to 12 years.

Latent defects insurance is generally taken out by the developer or owner of the property but may be a requirement of the finance provider behind a project to protect their investment. An inherent defect in the structure could be very costly to rectify so an LDI policy provides the security and peace of mind necessary to cover any rectification or reinstatement costs should the worst happen. Unlike legal arrangements, such as Collateral Warranties which require the negligent third party to rectify the defect, a latent defects policy will pay out regardless of fault. Negligence is often very difficult to prove so provided the defect is covered under an LDI policy, rectification costs will be met.

How much does LDI cost?

The price of an on LDI policy varies depending on the development itself. The cost can be affected by a large number of factors, including the size and value of the development.

If you would like to find out more about Latent Defects Insurance or obtain a quotation, please get in touch with us by calling 01603 218288.

Read more: What is a Latent Defect?