Throughout the past 30 years, the procurement of latent defect programmes for some of the largest and most complex buildings has consistently been at the heart of our proposition. Latent defects insurance is a highly-valued product by UK Real Estate developers as it adds a further layer of protection to any newly-built asset.

Latent Defects Insurance (LDI) policies provide first-party protection for building defects when they occur post-completion. Having an LDI policy in place can enhance the saleability of the completed building, while providing balance sheet protection.

A key benefit of an LDI policy is that it is written for the benefit of the property, rather than a specific legal entity. Making a claim is more straightforward than with many other insurance policies, as there is no requirement to establish who is at fault or to prove negligence. One simply needs to demonstrate that damage has occurred as a consequence of the manifestation of a defect in the way that the building was designed or built.

Policies are typically written for a period of ten or twelve years and provides protection for the total reinstatement value of the building.