Have you heard the phrase Latent Defects Insurance much recently? You may be a little unsure of what cover it provides, so, with this in mind we thought we would try and shed a little light on the subject. Over the course of today’s article we hope to provide you with some information which will help you to understand the benefits of this kind of insurance.
You may already know Latent Defects Insurance as Structural Warranty Insurance or as a Structural Guarantee, but the premise is exactly the same. In short, the purpose of this insurance policy is to protect a property owner from damages or defects that occur once building work has been completed on their property. If the fault is seen as the result of poor practice on the behalf of the original contractors, then they would be deemed liable.
The easiest way to describe how Latent Defects Insurance works is to imagine a scenario where a roof or wall collapses shortly after building work has been completed. If after an investigation, the defect appears to be the fault of the contractors, then you will be perfectly within your rights to submit your claim. Of course the defect doesn’t have to be anything as quite as extreme as we used in this example.
You may feel that you are covered for such eventualities in your current building insurance policy, however, this isn’t always the case. If there is evidence of a defect, then your policy will cover all of the necessary leg work, easing some of the stress at such a difficult time. Latent Defects Insurance can also shorten the overall claim period, ensuring a faster resolve. Did you know that this kind of policy covers residential properties as well as commercial buildings? A small peace of mind for those looking to invest a new build property.
We hope that this information proved useful to you. Contact us here at Watson Laurie today for more information about Latent Defects Insurance, and how it can protect you and your property.