Latent defects insurance, also known as structural defects insurance or structural warranty insurance, offers property owners protection against defects that may arise in the structure of a building or property that were not apparent at the time of purchase or construction. This type of insurance is commonly purchased in the UK by property developers, builders, or contractors, who seek to protect the property owner from the cost of repairs in case of structural defects that are not immediately noticeable. Unlike most forms of insurance, the policy is written for the benefit of the property, rather than an individual.
Typical issues covered by a latent defects insurance policy may include foundation problems, subsidence, structural instability, or defects in the design, workmanship, or materials used in construction, or a threat of imminent collapse requiring immediate remedial action. Cover is also provided for ingress of water through the waterproof envelope of the building. The policy is usually valid for 10 to 12 years after the construction's completion and covers the cost of repairing any defects discovered during this period. The policy may also cover the cost of temporary accommodation for the owner in case the property is uninhabitable during the repair process.
It's essential to note that latent defects insurance policies in the UK may have exclusions and limitations on what they cover. Some examples of things generally not covered by a latent defects policy in the UK are general wear and tear, non-structural issues, faulty design or workmanship that was known or should have been known at the time of construction, environmental factors, and pre-existing defects. Also not covered is any peril covered by a standard buildings policy, such as fire or storm.
The main point of contention when it comes to claims under a latent defects insurance policy is whether the claim meets the policy's criteria for "major damage." Major damage refers to defects that require extensive and costly repairs or reconstruction, which may vary between policies. For example, a cracked wall that is merely cosmetic or easily fixable may not be considered major damage, whereas a crack that indicates serious structural issues may be considered major damage. Major damage can include issues such as subsidence, major cracks in walls or ceilings, structural instability, or defects that affect the safety or habitability of the property.
Assessing latent defects insurance claims can be complex and challenging, as these claims typically arise from defects or faults that are not immediately apparent and can take years to manifest. As a specialist firm of loss adjusters, RHP has extensive experience in assessing latent defects claims. We understand the complexity of these claims and the importance of conducting a thorough investigation to determine the cause of the defect.
One of the key challenges in assessing latent defects claims is identifying the cause of the defect. RHP's team of experts has the necessary knowledge and experience to identify the cause of the defect accurately, knowing what has happened and how it has happened. This requires a deep understanding of the construction process and the materials used. Without this knowledge, it is difficult to determine whether the defect is the result of poor workmanship, faulty materials or design flaws, and this can be critical in ensuring the correct repair methodology, or consideration of potential subrogation factors.
Finally, it is essential to have a thorough understanding of the insurance policy covering the claim. RHP has extensive experience in interpreting insurance policies, ensuring that we can provide accurate advice and support to our clients.
In conclusion, when it comes to latent defects claims, it is crucial to have the correct expertise to ensure an accurate assessment. RHP's team has the necessary knowledge and experience to identify the cause of the defect, use the correct assessment methodology, and interpret the insurance policy accurately. With our expertise, we can provide our clients with the support they need to navigate these complex claims successfully.
Rick Hartley formed RHP in 1999, bringing together respected experts to allow Rick and the team the freedom to provide and maintain a level of personal attention to clients, which he recognised was being sorely missed at the larger firms.
More than 20 years later, the principles in which the business was devised remains our core approach, which has meant we continue to stand out and deliver what we promise. Free of the burdens of the large corporate culture, RHP was able to focus on building those client relationships, earning trust and confidence that we consistently produce an agile service with the utmost technical knowledge.
Continuing to offer a tailor-made response to each loss and avoiding barriers through processes which we know only serve to slow the service. Ensuring our team comprises forward-thinking industry experts, who can rely on their experience, knowledge, and flexibility to create solutions for complex matters.
Today, we at RHP have cultivated a culture where we believe that to offer the personal approach to the sectors we know and understand the best, we must consistently maintain the high standards we set for ourselves. Ensuring we evaluate and challenge what we do, how it needs to be done and how we deliver the best outcome, making sure we improve where we can, and remain resolute in understanding why we do what we do.
As RHP continues to grow from strength to strength, attracting plaudits on our swift response, technical excellence, flexible mythology, and amongst all, our personalised approach, we remain committed to always delivering solutions to complex matters and doing so with the best possible service. Attracting experienced personnel who understand and uphold our principles, we remain dedicated to fulfilling our promises when we are called upon.
To find out more email our Operations Director, Philip Roberts on p.roberts@trhp.co.uk
