Hepburns Insurance have in place, to assist the successful construction and occupation of developed property, facilities with leading Latent Defects Insurance providers including Premier Guarantee, Aviva, Royal & Sun Alliance and Allianz Cornhill.

Latent defects or decennial insurance is available on residential or commercial developments in the Channel Islands, UK or further afield whether planned, under construction or recently completed.

Latent Defects Insurance provides:

  • A 10 or 12 year policy that provides protection to building owners, occupiers and others against damage or the threat of collapse due to a defect in the structure of the building
  • The defect must be undiscovered on practical completion of the building and occur during the first 10 years
  • The cover can include external walls or roof whether structural or not (water ingress/weatherproofing)
  • The cover can include seepage below ground level
  • Option to insure consequential losses i.e. rent or alternative accommodation costs
  • An independent technical audit that includes a design check as well as monitoring workmanship on site

The benefits include:

  • The insurance is non-cancellable
  • No need to prove fault or liability on the part of third parties
  • Burdensome litigation does not need to take place before repairs are put in hand
  • Immediate funds are available to effect repairs without borrowing or self funding
  • Policy is assignable to future owners or tenants
  • Letting and marketing position of developer is strengthened
  • The technical audit assists quality and control of standards in terms of the design, materials used and workmanship
  • Technical auditors may detect defects prior to practical completion enabling rectification prior to owner or developer taking responsibility
  • Technical auditors are involved in finding a suitable solution once an insured defect manifests itself
  • Waiver of subrogation rights against the insured and can be extended to the professional and construction teams
  • Pre-contract arguments reduced