Latent defects insurance - Revision history

Designing Buildings at 11:50, 25 September 2020

2020-09-25T11:50:36Z

← Older revision		Revision as of 11:50, 25 September 2020
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	* Professional Indemnity Insurance.		* Professional Indemnity Insurance.

−	[[Category:Client_procedures]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Client_procedures]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]

Editor: Reverted edits by 46.16.215.86 (talk) to last revision by Editor

2019-09-26T11:07:54Z

Reverted edits by 46.16.215.86 (talk) to last revision by Editor

← Older revision		Revision as of 11:07, 26 September 2019
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−	It is the nature of construction projects that faults and defects caused by failures in design, workmanship or materials, may not become apparent or readily 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. Such defects are known as latent defects. Latent defects can be extremely ~~[https://www.peacockinsurance.co.uk/replacement-latent-defect-insurance-cover/~~ expensive and disruptive to rectify.]	+	It is the nature of construction projects that faults and defects caused by failures in design, workmanship or materials, may not become apparent or readily 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. Such defects are known as latent defects. Latent defects can be extremely expensive and disruptive to rectify.

−	~~[https://www.peacockinsurance.co.uk/latent-defect-insurance/~~ Latent defects insurance] provides cover for new buildings (or new works to existing buildings) in the event that latent defects become apparent. Latent defects insurance is seen to provide more complete cover for defects than other methods, (such as collateral warranties) which may require proof of breach of contract. This can take considerable time, and can be subject to complications such as net contribution clauses and insolvencies.	+	Latent defects insurance provides cover for new buildings (or new works to existing buildings) in the event that latent defects become apparent. Latent defects insurance is seen to provide more complete cover for defects than other methods, (such as collateral warranties) which may require proof of breach of contract. This can take considerable time, and can be subject to complications such as net contribution clauses and insolvencies.

	Latent defects insurance was proposed in 1988 when the Construction Industry Sector Group of the National Economic Development Council published their report Building Users' Insurance Against Latent Defects. At the time, there was little take up, as the premium, was in the order of 1.3% to 1.7% of the rebuilding cost. So, for example, on a £10 million rebuilding cost, the premium would be of the order of £150,000. In addition, there were fees and expenses for independent design checkers.		Latent defects insurance was proposed in 1988 when the Construction Industry Sector Group of the National Economic Development Council published their report Building Users' Insurance Against Latent Defects. At the time, there was little take up, as the premium, was in the order of 1.3% to 1.7% of the rebuilding cost. So, for example, on a £10 million rebuilding cost, the premium would be of the order of £150,000. In addition, there were fees and expenses for independent design checkers.

46.16.215.86 at 09:53, 26 September 2019

2019-09-26T09:53:16Z

← Older revision		Revision as of 09:53, 26 September 2019
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−	It is the nature of construction projects that faults and defects caused by failures in design, workmanship or materials, may not become apparent or readily 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. Such defects are known as latent defects. Latent defects can be extremely expensive and disruptive to rectify.	+	It is the nature of construction projects that faults and defects caused by failures in design, workmanship or materials, may not become apparent or readily 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. Such defects are known as latent defects. Latent defects can be extremely [https://www.peacockinsurance.co.uk/replacement-latent-defect-insurance-cover/ expensive and disruptive to rectify.]

−	Latent defects insurance provides cover for new buildings (or new works to existing buildings) in the event that latent defects become apparent. Latent defects insurance is seen to provide more complete cover for defects than other methods, (such as collateral warranties) which may require proof of breach of contract. This can take considerable time, and can be subject to complications such as net contribution clauses and insolvencies.	+	[https://www.peacockinsurance.co.uk/latent-defect-insurance/ Latent defects insurance] provides cover for new buildings (or new works to existing buildings) in the event that latent defects become apparent. Latent defects insurance is seen to provide more complete cover for defects than other methods, (such as collateral warranties) which may require proof of breach of contract. This can take considerable time, and can be subject to complications such as net contribution clauses and insolvencies.

	Latent defects insurance was proposed in 1988 when the Construction Industry Sector Group of the National Economic Development Council published their report Building Users' Insurance Against Latent Defects. At the time, there was little take up, as the premium, was in the order of 1.3% to 1.7% of the rebuilding cost. So, for example, on a £10 million rebuilding cost, the premium would be of the order of £150,000. In addition, there were fees and expenses for independent design checkers.		Latent defects insurance was proposed in 1988 when the Construction Industry Sector Group of the National Economic Development Council published their report Building Users' Insurance Against Latent Defects. At the time, there was little take up, as the premium, was in the order of 1.3% to 1.7% of the rebuilding cost. So, for example, on a £10 million rebuilding cost, the premium would be of the order of £150,000. In addition, there were fees and expenses for independent design checkers.

Editor at 15:07, 6 August 2019

2019-08-06T15:07:14Z

← Older revision		Revision as of 15:07, 6 August 2019
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	The use of latent defects insurance does not mean the end of collateral warranties. Most lawyers take the view when advising developers and tenants, that collateral warranties are still needed to plug any gaps there may be in the extent of cover provided by latent defects insurance. Unlike claims for breach of contract, cover under latent defects insurance is limited to the maximum sum insured, and only certain specified losses are covered. In addition, policies may include an excess (sometimes around 1%).		The use of latent defects insurance does not mean the end of collateral warranties. Most lawyers take the view when advising developers and tenants, that collateral warranties are still needed to plug any gaps there may be in the extent of cover provided by latent defects insurance. Unlike claims for breach of contract, cover under latent defects insurance is limited to the maximum sum insured, and only certain specified losses are covered. In addition, policies may include an excess (sometimes around 1%).

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

	* Breach of contract.		* Breach of contract.
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	* Legal indemnity insurance.		* Legal indemnity insurance.
	* Net contribution clauses.		* Net contribution clauses.
		+	* Post-completion insurance
	* Practical completion.		* Practical completion.
	* Professional Indemnity Insurance.		* Professional Indemnity Insurance.

	[[Category:Client_procedures]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]		[[Category:Client_procedures]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]

Editor at 15:49, 6 February 2018

2018-02-06T15:49:42Z

← Older revision		Revision as of 15:49, 6 February 2018
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	Cover will usually be provided for 8 to 12 years from the issue of the final certificate or certificate of practical completion (although longer policies are now available). Typically, the insurance provides cover, up to the full rebuild cost, for repairs and for work to prevent imminent damage.		Cover will usually be provided for 8 to 12 years from the issue of the final certificate or certificate of practical completion (although longer policies are now available). Typically, the insurance provides cover, up to the full rebuild cost, for repairs and for work to prevent imminent damage.

−	Basic policies cover the structure and weatherproofing but this can be extended to include non-structural elements and mechanical and electrical services (such as heating, ventilating, air-conditioning, water systems, lifts, escalators, electrical distribution systems, building management systems and so on) and some policies will provide cover for loss of rent, loss of profit or revenue, and the costs of working from alternative premises.	+	Basic policies cover the structure and weatherproofing but this can be extended to include non-structural elements and mechanical and electrical services (such as heating, ventilating, air-conditioning, water systems, lifts, escalators, electrical distribution systems, building management systems, and so on), and some policies will provide cover for loss of rent, loss of profit or revenue, and the costs of working from alternative premises.

	Premiums can either be payable annually, or through a single, one-off payment, and policies are generally freely assignable.		Premiums can either be payable annually, or through a single, one-off payment, and policies are generally freely assignable.
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	* Defects.		* Defects.
	* Insurance.		* Insurance.
		+	* JCT Clause 6.5.1 Insurance.
	* Joint names policy.		* Joint names policy.
	* Latent defects.		* Latent defects.

Editor at 10:56, 28 January 2016

2016-01-28T10:56:43Z

← Older revision		Revision as of 10:56, 28 January 2016
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−
	It is the nature of construction projects that faults and defects caused by failures in design, workmanship or materials, may not become apparent or readily 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. Such defects are known as latent defects. Latent defects can be extremely expensive and disruptive to rectify.		It is the nature of construction projects that faults and defects caused by failures in design, workmanship or materials, may not become apparent or readily 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. Such defects are known as latent defects. Latent defects can be extremely expensive and disruptive to rectify.

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	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===
−	*Breach of contract.
−	*Building Users' Insurance Against Latent Defects.
−	*Collateral warranties.
−	*Defects.
−	*Insurance.
−	*Latent defects.
−	*Legal indemnity insurance.
−	*Net contribution clauses.
−	*Practical completion.
−	*Professional Indemnity Insurance.

−	[[Category:Client_procedures]]	+	* Breach of contract.
−	[[Category:Contracts_/_payment]]	+	* Building Users' Insurance Against Latent Defects.
−	[[Category:Cost_/_business_planning]]	+	* Collateral warranties.
		+	* Defects.
		+	* Insurance.
		+	* Joint names policy.
		+	* Latent defects.
		+	* Legal indemnity insurance.
		+	* Net contribution clauses.
		+	* Practical completion.
		+	* Professional Indemnity Insurance.
		+
		+	[[Category:Client_procedures]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]

Designing Buildings at 13:59, 8 July 2015

2015-07-08T13:59:42Z

← Older revision		Revision as of 13:59, 8 July 2015
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	*Insurance.		*Insurance.
	*Latent defects.		*Latent defects.
		+	*Legal indemnity insurance.
	*Net contribution clauses.		*Net contribution clauses.
	*Practical completion.		*Practical completion.
	*Professional Indemnity Insurance.		*Professional Indemnity Insurance.

−	~~[[Category:Contracts_/_payment]]~~
	[[Category:Client_procedures]]		[[Category:Client_procedures]]
		+	[[Category:Contracts_/_payment]]
	[[Category:Cost_/_business_planning]]		[[Category:Cost_/_business_planning]]

2.25.39.192 at 11:08, 26 July 2013

2013-07-26T11:08:15Z

← Older revision		Revision as of 11:08, 26 July 2013
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	It is the nature of construction projects that faults and defects caused by failures in design, workmanship or materials, may not become apparent or readily 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. Such defects are known as latent defects. Latent defects can be extremely expensive and disruptive to rectify.		It is the nature of construction projects that faults and defects caused by failures in design, workmanship or materials, may not become apparent or readily 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. Such defects are known as latent defects. Latent defects can be extremely expensive and disruptive to rectify.

−	Latent defects insurance provides cover for new buildings (or new works to existing buildings) in the event that latent defects become apparent. Latent defects insurance is seen to provide more complete cover for defects than other methods, (such as collateral warranties) which may require proof of breach of contract. This can take ~~considerably~~ time, and can be subject to complications such as net contribution clauses and insolvencies.	+	Latent defects insurance provides cover for new buildings (or new works to existing buildings) in the event that latent defects become apparent. Latent defects insurance is seen to provide more complete cover for defects than other methods, (such as collateral warranties) which may require proof of breach of contract. This can take considerable time, and can be subject to complications such as net contribution clauses and insolvencies.

	Latent defects insurance was proposed in 1988 when the Construction Industry Sector Group of the National Economic Development Council published their report Building Users' Insurance Against Latent Defects. At the time, there was little take up, as the premium, was in the order of 1.3% to 1.7% of the rebuilding cost. So, for example, on a £10 million rebuilding cost, the premium would be of the order of £150,000. In addition, there were fees and expenses for independent design checkers.		Latent defects insurance was proposed in 1988 when the Construction Industry Sector Group of the National Economic Development Council published their report Building Users' Insurance Against Latent Defects. At the time, there was little take up, as the premium, was in the order of 1.3% to 1.7% of the rebuilding cost. So, for example, on a £10 million rebuilding cost, the premium would be of the order of £150,000. In addition, there were fees and expenses for independent design checkers.

Designing Buildings at 07:42, 26 July 2013

2013-07-26T07:42:52Z

← Older revision		Revision as of 07:42, 26 July 2013
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	*Collateral warranties.		*Collateral warranties.
	*Defects.		*Defects.
		+	*Insurance.
	*Latent defects.		*Latent defects.
	*Net contribution clauses.		*Net contribution clauses.

Designing Buildings at 05:56, 18 June 2013

2013-06-18T05:56:56Z

← Older revision		Revision as of 05:56, 18 June 2013
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	Latent defects insurance provides cover for new buildings (or new works to existing buildings) in the event that latent defects become apparent. Latent defects insurance is seen to provide more complete cover for defects than other methods, (such as collateral warranties) which may require proof of breach of contract. This can take considerably time, and can be subject to complications such as net contribution clauses and insolvencies.		Latent defects insurance provides cover for new buildings (or new works to existing buildings) in the event that latent defects become apparent. Latent defects insurance is seen to provide more complete cover for defects than other methods, (such as collateral warranties) which may require proof of breach of contract. This can take considerably time, and can be subject to complications such as net contribution clauses and insolvencies.

−	Latent defects insurance was proposed in 1988 when the Construction Industry Sector Group of the National Economic Development Council published their report Users' Insurance Against Latent Defects. At the time, there was little take up, as the premium, was in the order of 1.3% to 1.7% of the rebuilding cost. So, for example, on a £10 million rebuilding cost, the premium would be of the order of £150,000. In addition, there were fees and expenses for independent design checkers.	+	Latent defects insurance was proposed in 1988 when the Construction Industry Sector Group of the National Economic Development Council published their report Building Users' Insurance Against Latent Defects. At the time, there was little take up, as the premium, was in the order of 1.3% to 1.7% of the rebuilding cost. So, for example, on a £10 million rebuilding cost, the premium would be of the order of £150,000. In addition, there were fees and expenses for independent design checkers.

	However, there is now much more flexibility in the insurance market as to the range of available cover available. There are several insurers writing building defects type insurance and premiums are reducing. As a consequence, latent defects insurance is becoming more prevalent.		However, there is now much more flexibility in the insurance market as to the range of available cover available. There are several insurers writing building defects type insurance and premiums are reducing. As a consequence, latent defects insurance is becoming more prevalent.
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	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===
−	*Users' Insurance Against Latent Defects.	+	*Breach of contract.
		+	*Building Users' Insurance Against Latent Defects.
	*Collateral warranties.		*Collateral warranties.
	*Defects.		*Defects.
	*Latent defects.		*Latent defects.
		+	*Net contribution clauses.
		+	*Practical completion.
	*Professional Indemnity Insurance.		*Professional Indemnity Insurance.