When you invest in property development, you’re not just constructing buildings — you’re building confidence. Whether it’s a new residential block, a commercial unit, or a mixed-use development, unseen construction defects can undermine even the most carefully planned projects. That’s where Latent Defects Insurance (also known as Structural Warranty Insurance) steps in.

At Champion Insurance Group, we help developers, contractors, and property owners safeguard their projects from hidden risks that only reveal themselves years after completion.

What is Latent Defects Insurance (LDI)?

Latent Defects Insurance (or Structural Warranty Insurance) protects the building owner against the cost of repairing or rebuilding following structural damage caused by defects in design, materials, or workmanship that were not apparent at practical completion.

Unlike standard construction or contractors’ insurance policies, which cover risks during the build phase, Latent Defects Insurance provides long-term protection — typically for 10 or 12 years after completion.

Why is it so important?

Even with the best contractors, quality assurance processes, and building control inspections, hidden issues can emerge years later. Defects in foundations, load-bearing walls, or roofs might not become evident until the building is occupied.

Without a structural warranty policy, these issues can lead to:

• Expensive repair costs
• Legal disputes between developers, contractors, and owners
• Delays in property sales or refinancing
• Reduced asset value

Many lenders and funders now require Latent Defects Insurance as a condition of financing — recognising its role in protecting both the property’s long-term integrity and the developer’s financial stability.

Who needs Latent Defects / Structural Warranty insurance?

This type of cover is essential for:

• Property developers – to protect their investment and satisfy lender requirements
• Contractors and builders – to offer reassurance to clients and stand apart from competitors
• Housing associations and local authorities – ensuring long-term asset protection
• Property investors and owners – to protect against costly structural issues post-completion

Whether it’s a new-build, conversion, or refurbishment, the right structural warranty policy offers peace of mind long after handover.

The key benefits of structural warranty cover

✅ Long-term protection – usually 10 to 12 years post-completion
✅ No need to prove negligence – the policy responds to the defect itself
✅ Supports finance and resale – often a lender prerequisite
✅ Protects your reputation – by demonstrating a commitment to quality and responsibility

What’s the difference between Latent Defects and Professional Indemnity insurance?

This is a common question.

While Professional Indemnity Insurance covers professionals such as architects or engineers for claims arising from their advice or design work, Latent Defects Insurance focuses on the building itself.

It doesn’t require proof of fault — meaning claims can be settled faster and without legal wrangling. The two policies complement each other, not replace one another.

Why choose Champion Insurance Group?

At Champion Insurance Group, we specialise in arranging Latent Defects and Structural Warranty Insurance across residential, commercial, and mixed-use developments.

We work with a panel of leading structural warranty providers — ensuring access to competitive premiums, flexible terms, and robust cover that meets lender expectations.

Our expertise spans complex projects, including:

• Mixed-use developments
• Refurbishment and conversion schemes
• High-rise residential blocks
• Developments with cladding or fire safety considerations

As an independent insurance broker, our role is to act in your best interests – ensuring you get the right protection, at the right price, from the right insurer.

Contact our specialist team today:

📅 Schedule Appointment (Teams)
📞 03330 430 430 (option 3)
📧 Info@ChampionInsure.co.uk