Post-completion insurance
Post-completion insurance (more usually known as latent defects insurance) provides cover for latent defects. These are failures in design, workmanship or materials that may not become apparent until many years after practical completion of the project and long after the end of the defects’ liability period.
This form of insurance provides cover for new building work or for work on existing buildings. It is seen as providing more complete cover for defects than other methods (such as collateral warranties) which may require proof of breach of contract. Any party with an interest in the property (eg owner or developer) can be the insured (policy holder), but it can also be the funder or an incoming tenant who has repair obligations under a lease.
Available for a period of between 8-12 years from the date of final certificate or practical completion, post-completion insurance typically covers defects in the structure and weatherproof envelope of the building – but no other defects.
Whether an insurer decides to provide cover will depend on whether they are confident and satisfied regarding the original construction. However, when cover is provided, it usually involves significant premiums. For example, in the case of a contract works value of £2,500,000, a latent defects policy could cost around £25,000 to £30,000; when bearing in mind the excess is normally 1%, ie £25,000 of the sum insured, the first £50,000 (in this example) of any claim will have to be met by the insured.
[edit] Related articles on Designing Buildings Wiki
- Building Users' Insurance Against Latent Defects.
- Collateral warranties.
- Contractors' all-risk insurance.
- Contract works insurance.
- Decennial liability.
- Design liability.
- Directors and officers insurance.
- Employer's liability insurance.
- Excepted risk.
- Flood insurance.
- Future of construction insurance.
- Indemnity to principals.
- Integrated project insurance.
- JCT Clause 6.5.1 Insurance.
- Joint names policy.
- Latent defects insurance.
- Legal indemnities.
- Legal indemnity insurance.
- Non-negligent liability insurance.
- Performance bond.
- Professional Indemnity Insurance.
- Public liability insurance.
- Residual value insurance.
- Reverse premium.
- Specified perils.
- Subcontractor default insurance (SDI).
- Warranty.
Featured articles and news
Shading for housing, a design guide
A look back at embedding a new culture of shading.
The Architectural Technology Awards
The AT Awards 2025 are open for entries!
ECA Blueprint for Electrification
The 'mosaic of interconnected challenges' and how to deliver the UK’s Transition to Clean Power.
Grenfell Tower Principal Contractor Award notice
Tower repair and maintenance contractor announced as demolition contractor.
Passivhaus social homes benefit from heat pump service
Sixteen new homes designed and built to achieve Passivhaus constructed in Dumfries & Galloway.
CABE Publishes Results of 2025 Building Control Survey
Concern over lack of understanding of how roles have changed since the introduction of the BSA 2022.
British Architectural Sculpture 1851-1951
A rich heritage of decorative and figurative sculpture. Book review.
A programme to tackle the lack of diversity.
Independent Building Control review panel
Five members of the newly established, Grenfell Tower Inquiry recommended, panel appointed.
Welsh Recharging Electrical Skills Charter progresses
ECA progressing on the ‘asks’ of the Recharging Electrical Skills Charter at the Senedd in Wales.
A brief history from 1890s to 2020s.
CIOB and CORBON combine forces
To elevate professional standards in Nigeria’s construction industry.
Amendment to the GB Energy Bill welcomed by ECA
Move prevents nationally-owned energy company from investing in solar panels produced by modern slavery.
Gregor Harvie argues that AI is state-sanctioned theft of IP.
Experimental AI housing target help for councils
Experimental AI could help councils meet housing targets by digitising records.
BSRIA Occupant Wellbeing survey BOW
Occupant satisfaction and wellbeing tool inc. physical environment, indoor facilities, functionality and accessibility.