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Latent Defects Insurance

Latent defects insurance offers protection to owners, occupiers, developers, and lenders against known title defects identified during the property due diligence process.
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What is latent defects insurance?

During the construction phase of a building, loss or damage is normally insured under an “all risks” contract works insurance policy. Following completion of construction, a property “all risks” policy is usually arranged; however, this policy does not provide protection for damage arising out of an inherent or latent defect in the building.

Latent defects insurance (LDI) provides cover in the event of an inherent defect in the design, workmanship, or materials becoming apparent in the structure or waterproofing envelope of a building resulting in physical loss or damage. It can help indemnify you for the cost of the repairs to or replacement of damaged property and/or help pay to prevent imminent further damage caused by a defect up to the total sum insured, typically the full reinstatement value. Cover can be arranged for new buildings and significant extensions to or conversions of existing buildings.

Brochure

Marsh has a bespoke insurance offering for latent defects

Access our brochure to understand what latent defects insurance protects against, the scope and benefits of cover, and why considering this type of insurance in place is important.

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Our local expertise

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Maarten van Haaps

Head of Construction, Marsh Specialty

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Brad  Day

National BDM – Corporate Construction, Marsh Specialty

This publication is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. LCPA 23/048

“Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions. This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from JLT Risk Solutions on request. Full information can be found in the JLT Risk Solutions Financial Services Guide.”