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Developers & Body Corporate Latent Defects Insurance

Policy Covers

Also called structural defects, to protect owner builders, home owners residential and commercial builders, developers and Body Corporates in the event that an unforeseen structural defect occurs after practical completion of the building.

It is the nature of construction projects that faults and defects caused by failures in design, workmanship or materials, may not become apparent or detectable (even with the exercise of reasonable care) until many years after completion of the project, long after the end of the defects liability period. Latent Defects can be extremely expensive and disruptive to rectify.

Latent Defects Insurance indemnifies the insured for the cost up to the total sum insured of the repairs to the damage caused by the defect and is available for 10 years from the date of practical completion.

Developers:

Whether you are having built an apartment building, multi units, office building . Latent Defects Insurance gives you the comfort of a 10 year policy to protect your investment, gives the financial institution comfort that in the event of a major problem it will be fixed, and owners have the same comfort that they will be protected.

Easier to obtain finance
Easier to sell
Easier claims process – no litigation

“It is important for me as a developer to have the right guarantee that not only gives my funders peace of mind but gives myself and any potential future owners of the property that vital reassurance.” – Antonio C

Body Corporate and Owners Corporation:

The news is full of unit owners having problems leaking balconies, waterproofing, roofing issues etc, all of which required the unit holders to either contribute to the Body Corporate Fund or go it alone with legal litigation against the builder and or developer.

Very expensive time consuming stressful, not what unit owners intentions were when they bought their unit.

Buildsafe Latent Defects Insurance offers unit holders of Body Corporate’s the protection where Structural Defects occur, for 10 years and the policy is transferable to future owners.

Our special report – Why you need Latent Defects Insurance explains the pros and cons of having Latent Defects Insurance in place prior to completion of the development.

Who Will the Policy Protect ?

Builder when noted as an insured
Developer when noted as an insured
The owner, either initial or future owner
Body Corporate members

What Will We Cover

Apartment Buildings
New Home
Renovations/extensions

Offices buildings
Multi units, Townhouses , Dual Occupancy
Mixed use

Is my Builder insured as well?

Yes, you both are included on the policy as the insured and therefore protected in the event of a claim.

So, it is in the builders interest to fully support your efforts to obtain Latent Defect Insurance.
Please complete the Application form.

5 Reasons that make Latent Defect Insurance vital to your success:

A Comprehensive Latent Defect Insurance policy which delivers security and peace of mind
Freedom from risk of future failure in performance
Removes the need for litigation
Improves the value of the property at point of sale and on re-sale
Underwritten by certain underwriters at Lloyd’s. Established in 1688

The problem is these or any major structural Defects may happen in 3 – 4 – 8 – 10 years time, are you willing to take the risk ?

GET A QUOTE

FAQs

Got a Question about Latent Defects Insurance? We’ve got the Answer!

Difference between Builder’s Warranty and Latent Defects Insuranc

Builders Warranty, Builder is statutory required to supply 6 year Builders Warranty to cover homeowner if Builder dies, disappears or becomes insolvent e.g. Takes deposit- disappears, defects arise and ‘fight’ occurs. There is an implied 10 Year Warranty period under the ACT.

The Builder is responsible!

Latent Defect Insurance, The Builder is the insured along with homeowner – no liability on the builder, no personal guarantees. Policy Is for 10 Years. In the event of a potential Structural Defect the insurer and NOT the builder is responsible.

How long does the Latent Defects Insurance period last

What is the difference between Structural Defects Insurance and Latent Defects Insurance?

Is Latent Defects insurance transferrable?

How much is the excess?

What is the most I can claim?

Why take out the policy before I start?

Who is the insurer?

Who is responsible for fixing the Structural Defects if they arise?

What can I insure?

Who can take out the policy?

Can I make a claim during construction?

Can I be sued under the policy?

How long would it take to fix the defect?

What is the difference between Owner Builder Latent Defects Insurance and Owner Builder Warranty Insurance?

Owner Builders Latent Defects Insurance protects the Owner Builder while they are living in the home they have built, for structural defects for up to 10 years after completion.

It is transferrable for the 10 year period and in the event of a Structural Defect occurring, the insurer, Lloyds of London has the option of taking action against the person(s) responsible, not you the Owner Builder, you are the Insured. Once accepted, the Insurer will fix the Structural Defect and you are not involved in legal litigation, hassles and cost.

Owner Builder Warranty is a statutory requirement if the Owner Builder sells, it is for the benefit of the purchaser if the owner builder dies, disappears or becomes insolvent in the event of a claimable event. It is a statutory requirement and you the Owner Builder are responsible to fix any non-structural defects (2 years) and Structural Defects (6 Years) of the home bought by the purchaser. It is mandatory in Victoria and Western Australia.

N.B. There is an implied 10 years warranty period. So even though Warranty Insurance has a 6 year period, you are on risk for 10 years and if a structural defects occurred in year 9, then you are required to fix the problem.

I won’t need this, I know my tradies.

How much will it cost?

What is the technical inspection report?

Am I responsible to fix the defects once the Policy starts?

Is there a maintenance period?

Is there a 10 year implied warranty for defects?

Can I buy Latent Defects Insurance after I have finished building?

Difference between Construction and Public Liability and Latent Defect Insurance

It will be a new building, why do I need Latent Defect Insurance?