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Stanhope Cooper arranges Latent Defects Insurance tailored to your property, for projects over £1 million.

Latent Defects Insurance, also known as a structural warranty, is essential when undertaking a new build or renovation project.

Our specialist building defects insurance provides insurance cover for inherent building defects in both residential and commercial property. These include latent defects in the designs, constructions or materials which only become apparent after practical completion.

Latent defects insurance policies cover the cost of rectifying or repairing any defects that might occur.

We are also able to offer specialist latent defect cover such as policies that don’t hold the builder or developer accountable for the first 2 years of the policy or component failure extensions to policies which give clients extra security for non-structural utilities such as boiler, pipework and electrical wiring.

The key to a successful build is the ability to plan ahead. So the right time to start thinking about structural defects insurance for your property is at the beginning of a project. Beginning your cover before starting your project keeps your property secure for the duration of the build.

Latent Defects Insurance Cover

Stanhope Cooper Structural Warranty Insurance covers:

  • New builds
  • Self builds
  • Partially-completed builds
  • Extensions
  • Conversions
  • Renovations

Benefits of a Latent Defects / Structural Warranty Insurance Policy:

Structural Warranty

Stanhope Cooper’s structural warranty insurance covers all structural elements of the build. This includes all internal and external load bearing elements, as well as non-load bearing fixtures and fittings essential to the waterproofing and weatherproofing of the building.

Raising Standards and Providing Protection

An expert surveyor will be appointed to assist in your property’s needs. The surveyor will make regular visits to ensure the best construction practices and maintain building regulations.

By starting strong and keeping an eye on possible building defects, our clients’ homes and commercial properties are built to a higher standard but also covered should any latent defects arise.

Specialist Latent Defects Insurance 

We arrange bespoke latent defects insurance offering optional extras such as: Component Failure Extension and No 2 Year Developer Warranty (excludes water ingress in year 1).

The Component Failure Extension offers cover in the event that non-structural component parts expire prematurely. This includes boilers, electrical wiring and pipework. Most Structural warranties policies do not cover component failure but Stanhope Cooper latent defects insurance offers you the added extra of more security if desired.

Many insurance companies include a 2 year Developer Warranty as a way to mitigate risks in the highest risk period. As an optional extra we can remove this restriction. Stanhope Cooper are a specialist broker, so we arrange insurance to suit you not the other way round. Flexible policies offer more protection and more freedom.

Mortgage Approvals

The Council of Mortgage Lenders typically require a new build property to have a latent defects policy as insurance on the loan. This means mortgages can be approved at a lower rate because lenders can feel secure in the investment. Stanhope Cooper’s Latent defects Insurance complies with the Council of Mortgage Lenders requirements.

Making the sales process smoother and faster

We know selling homes is a lengthy process, so having a surveyor’s certificate confirming quality of construction means less to delay you selling your property. Buyers feel more secure knowing they are buying into protected homes and offices. The policy can be passed on to the buyer, providing them with peace of mind for years to come.

10-12 years Structural Warranty repairs cover

The advantage of Latent Defects Insurance is you are covered, even if poor workmanship only becomes apparent after completion or your contractors go bust.

Full reinstatement

In the event of a building defect or structural failure the policy will cover the cost of complete or part rebuilding including covering architects and engineer’s fees.

Are you considering Collateral Warranties instead of Structural Warranties?

Collateral Warranties are another form of property developers insurance. The homeowner or developer can take out contracts with the contractors under the Contracts Act 1999. Over the last 3 years more and more homeowners and property developers have recognised the benefits of latent defect insurance policies (structural warranties) over traditional collateral warranties.

Structural Warranties

  • Easier and cheaper to make a claim because there is no need to establish a guilty party.
  • No need to prove breach of contract by the Construction company or contractors so no legal fees to pay as a result of a claim.
  • Still valid if contractor declares insolvency.
  • Your building is protected because claims can be paid out regardless of who was at fault.
  • Indemnified up to maximum sum insured (typically the full reinstatement value).
  • Keeps you covered for up to 10-12 years.
  • Covers the whole building from damage caused by a latent defect.

Collateral Warranties

  • Caps on liability depend on contract.
  • Become invalid if the contractor declares insolvency.
  • Annual renewal to ensure full coverage.
  • Covers losses attributable to poor workmanship and negligent design.

After the event latent defects insurance cover

Also for projects that have already started we are able to provide ‘after the event’ cover but this is not advisable due to the increased costs involved.

Risk management

Latent defects insurance also represents a very good risk management tool for the property owner, developer or contractors involved. Planning ahead and managing the potential risks leads to a successful project completion with years of peace of mind for the owner and potential buyers.

Our clients benefit from using an experienced latent defects insurance broker:

Stanhope Cooper specialise in latent defects insurance. Since our expert Property Development team know the right insurers to talk to and the right questions to ask, we get you the most out of your cover.

We can negotiate substantially reduced premiums on clients’ behalf by providing quotations from all leading providers and specialist structural warranty insurers. Developers and Contractors only tend to approach one or two providers and therefore do not obtain the most competitive terms. We go to market, ensuring the most competitive price for client’s cover.

While the Technical Audit fee is always payable up front, we can often negotiate for just 50% of the premium to be payable up front with the balance of the premium payable upon completion and sign off.

Finding and negotiating the right Latent Defect Insurance is time-consuming. We do the leg work to find you latent defect insurance tailored to you and your property’s needs.

We are with you every step of the way. After you request a quote, we go to market to compare the best quotes from our specialist panel of Structural Warranties underwriters. Then we register with a suitable surveyor. The surveyor makes a full specification tailored to your property.

We work closely with the surveyor who regularly inspects the project during construction. Throughout the building project we keep your insurer updated with the progress by liaising with your contractors to make sure everything is going to plan. We issue the policy as soon as the build regulations have been signed off.

Get in touch

Get a quoteor call us on +44 (0)20 7776 9790