Latent Defects Insurance
Latent defects insurance (LDI) is a type of insurance that provides cover for the cost of remedying and rectifying damage arising out of latent or inherent defects.
Latent defects are normally defined as faults in the design, workmanship, materials, supervision, construction, installation or site preparation of a new building that remain undiscovered at the date of practical completion, but come to light afterwards by virtue of physical damage, and are of a type that could not reasonably have been revealed by the insured.
An LDI policy is subject to a satisfactory technical audit throughout the construction process, hence the reason why the cover needs to be arranged prior to the start of any major works. Cover is not impossible to arrange after this date, but enhanced rates and / or restrictions on coverage may apply.
Latent defects are normally defined as faults in the design, workmanship, materials, supervision, construction, installation or site preparation of a new building that remain undiscovered at the date of practical completion, but come to light afterwards by virtue of physical damage, and are of a type that could not reasonably have been revealed by the insured.
An LDI policy is subject to a satisfactory technical audit throughout the construction process, hence the reason why the cover needs to be arranged prior to the start of any major works. Cover is not impossible to arrange after this date, but enhanced rates and / or restrictions on coverage may apply.