• Builder when noted as an insured
• Developer when noted as an insured
• The owner, either initial or future owner

What is the difference between Builders Warranty and Structural Defects Insurance. Builders Warranty is activated if you the builder dies, disappear or becomes insolvent. Structural Defects Insurance activates if an unforeseen structural defect occurs after Completion for up to 10 years from that date.

Builders are liable for up to 10 years for defects! Under the Building Act. However Latent Latent Defects insurance is triggered by a Structural Defect for which Insurers manage the claim under the policy,validate the claim and fix the problem.

Plus there is no need to prove negligence from a contractor or place the blame on anyone. Once the structural defects is proven, Latent Defects Insurance is activated to fix your client’s problem. It removes costly time delays and legal costs on proving fault and pursuing relevant parties to fix the defects.

And the best part of Latent Defects Insurance is that as an insured party you are NOT responsible to fix the problem.

Why? You and the Owner/developer are the named insured, therefore you are the party to be protected. The insurer will look to those responsible who caused the Structural Defect – NOT YOU!

And if you are thinking of retiring in the next 10 years, the last thing you want is to be in litigation 8-10 years into your retirement. Buildsafe Latent Defect Insurance takes away that problem so you relax in retirement.

Sales Advantage:-

When quoting on jobs you now have the advantage of offering to the homeowner a 10 year Structural Defects Insurance policy that in the event of a structural defect occurring the homeowner is protected and it is transferable plus it is underwritten by certain underwriters at Lloyd’s, the world’s oldest and most recognized insurance company established in 1688.

• There is no requirement for the policyholder to establish fault or negligence.
• Costly, burdensome, and time-consuming litigation does not need to take place before repairs can be carried out, which enables the structure to be returned to use speedily and with the minimum of interruption.
• Tenants can be more attracted to a building where Latent Defect Insurance has been arranged than to one where this protection does not exist.

Commercial developments are generally large projects with considerable funds at risk for the builder/developer. Latent Defect Insurance activates after completion, it is a 10 year policy. You must to contact us before construction has commenced as it is important to have the policy in place prior to commencement and meet the Insurers ongoing requirements.

Latent Defect Insurance gives comfort to the financier the owner, developer and can be transferred with the sale of the building for up to 10 years. This will give confidence to any purchaser.

And the best part of Latent Defects Insurance is that as an insured party you are NOT responsible to fix the problem.

Why? You and the Owner/developer are the named insured, therefore you are the party to be protected. The insurer will look to those responsible who caused the Structural Defect – NOT YOU!

And if you are thinking of retiring in the next 10 years, the last thing you want is to be in litigation 8-10 years into your retirement.

Buildsafe Latent Defect Insurance takes away that problem so you relax in retirement.

The best time to contact us for a quotation is at the earliest stage in the project before construction has started which will ensure that you receive the best possible quotation. After work has started, the costs of the policy will increase as there will be elements of the project which the Insurers have not had the opportunity to check and verify.

Go to our downloads page. Choose which category of builder you are, the form is interactive and once we receive the form together with the documents required we will be back to you with the price. Be careful and fully complete the form and attach the required documents (listed on the form). Otherwise you will hold up the application.

• Builder close or wanting to retire.
• No personal guarantees.
• Removes provision for rectification from Balance sheet.
• No long-term Liabilities.
• Builder as the insured is held harmless.

• Policy responds once a structural defect has been validated, where the owner does not have to take legal action as the policy activates in favour of the insured
• 10 years policy transferable to a new owner
• Repairs can proceed quickly without legal action. Occupant is put at less inconvenience
• Certain underwriters at Lloyd’s
• Increases the sales value of the building
• Increases the opportunity to acquire a better financial out come when seeking construction finance
• Less risk for occupier as in the event of a legitimate defect the Latent Defects policy will activate
• There is no need to prove negligence

Inspectors, architects, building designers, tradesmen can make mistakes and there can be fault with the building materials. Latent Defect Insurance covers you against these potential risks.

As a Builder to obtain cover for your project you will need to register if your Turnover is over $3 Million or if you are under $3 Million you can register and complete the project application form. Please refer to our Downloads page for the correct forms.

Once we receive the forms we will be in contact with more details.

FIND OUT MORE!