Latent Defects Insurance (LDI) policies provides 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.

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Latent Defects Insurance

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Bespoke cover to protect your bottom line

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.

What we cover

  • Structural defects, and against the threat of imminent collapse requiring immediate remedial action to prevent damage

  • Ingress of water through the ‘waterproof’ envelope of the building

  • Commercial developments as well as residential build for rent or student development

  • Structure of the building and the mechanical and electrical equipment installed inside (M&E LDI)

  • Rental or revenue protection for building owners

  • Residential or homeowner warranty

Our Latent Defect Insurance team

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Rahul Sharma

Senior Vice President
rahul.sharma@lockton.com
+44 7384 876 713

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Daryl Harris

Vice President
daryl.harris@lockton.com
+44 7392 287 656

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Libby Snow

Vice President
libby.snow@lockton.com
+44 207 933 1324

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