Latent Defects Insurance

commercial real estate insurance broker

Latent Defects Insurance (LDI) provides cover for rectifying or repairing damage resulting from failures in the design, workmanship and materials of a residential or commercial property.

For newly-built or converted homes, an LDI policy (or ‘New Home Warranty’ as it’s sometimes called) is a mandatory requirement if a mortgage is required for purchase. The cover is usually arranged by the property developer or builder on behalf of the property owner or tenant.

It’s best to start an LDI policy before the start of construction, although we can arrange cover for part-completed or even fully-completed schemes. Policies are usually set up for a period of 10 or 12 years from the date of final certificate or practical completion. They can also include additional cover for buyer deposits, loss of rent and mechanical and electrical.

For further information on Latent Defects Insurance, please see our brochure.