Latent Defects Insurance | Master Builders Insurance Brokers

mbais product Commercial Defects

Latent Defects Insurance

Complete cover for structural defects on commercial buildings.

Cover for

Developers
Commercial builders

 

Cover period

10 years

What is Latent Defects Insurance?

Latent Defects Insurance is a first resort policy that covers loss or damage to Class 2 buildings, caused by a major defect in design, materials, or workmanship.

LDI provides cover for structural defects after a building is completed and is taken out by developers when a project starts.

The trigger for a claim would be the discovery of a major defect. The claim would be made by the property owner.

Latent defects cover allows the developer and/or builder the ability to provide a 10-year major defect guarantee. Supported by this additional insurance protection the developer is in a stronger position in selling LDI insured property units by virtue of the additional value they can provide to potential purchasers. It symbolises that the developer is trustworthy and has passed the quality examination through the insurer’s quality assurance processes.

 

How does the product work?

MBIB LDI diagram desktopMBIB LDI diagram mobile

Why would a Developer or Builder be carrying out Class 2 building need LDI?

There has now been a formal announcement from the NSW State Government for Latent Defects Insurance to be utilised as an alternative instrument to the costly, and often ineffective Strata Defects Bond.

Why choose Master Builders Insurance Brokers?

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Brent  Cooper
Brent Cooper
Business Development Team Leader

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