United Kingdom. New build and conversion projects
What does latent defects insurance cost, and when do you buy it?
Latent defects insurance, also sold as a structural warranty, covers damage from defects in the structure that nobody could reasonably have found at completion. The cost is driven by build value, construction type and how much inspection the insurer requires, but the decision that costs developers most is not price at all. It is timing: this cover is underwritten alongside the build, so a policy has to be arranged before work starts, and it is very difficult to buy for a building nobody inspected.
The process
- Tell us about the project, the construction type and where you are in the programme. Two minutes, no account.
- We pass your details to brokers and providers who place latent defects and structural warranty risks, and to no one else.
- They confirm what inspection they need and quote. We place no insurance and give no advice on which policy to take.
Latent Defects Insurance Cost is an independent introducer site operated by Ellul Solutions Ltd. We are NOT authorised or regulated by the Financial Conduct Authority, and we are not an insurer or a broker. We do not advise, arrange or recommend any policy, cover or provider: we introduce you to brokers and providers by passing your details to them, and they deal with you directly. We may be paid a commission for that introduction by the firm we introduce you to, and it never changes the premium you are quoted. Nothing here is insurance, legal or construction advice. No premium is published on this site because latent defects cover is rated individually on value, construction type, unit mix, track record and inspection. Cover periods are given as the typical market range rather than as a rule; the period is a term of whichever policy you buy. Building control and building safety duties are separate statutory matters from insurance and are for your own advisers. Check any broker or provider on the FCA's Financial Services Register before paying anything.
What drives the cost of UK latent defects cover, and when each is fixed, 2026
Last updated
Developers shop this cover on premium and lose money on timing and scope. This table sets out each cost driver, the direction it moves the price, and the point in the programme after which it can no longer be changed.
This table describes the structure of latent defects and structural warranty cover as written in the UK market and the sequence in which decisions have to be taken. It quotes no premium and no rate, because this cover is rated individually on reinstatement value, construction type, the developer's record and the inspection regime required, and any figure published here would be illustrative rather than an offer. Cover periods are given as the typical range seen in this market rather than as a rule; the period is a term of whichever policy you buy. Where building control and regulatory duties are referenced, those are separate statutory matters from insurance and are pointed at rather than summarised, because they depend on the building and are for your own advisers.
| Cost driver | Which way it moves the premium | When it stops being changeable | What to ask, in writing |
|---|---|---|---|
| Reinstatement value of the works | Up with value, broadly proportionally | At inception, though it can be increased by endorsement | Is the sum insured the rebuild cost or the sale value? They are different numbers |
| Construction type | Up for non-traditional, modular and timber frame | Design stage | Do you require additional inspection for this construction type? |
| Number and type of units | Flats generally cost more than houses per unit | Design stage | Is cover per unit or for the development as a whole? |
| Inspection regime | More inspection costs more but is often what makes cover available | Before work starts | How many inspections, at which stages, and who pays for them? |
| Developer track record | Down with a record the provider can verify | Cannot be changed | What evidence of previous schemes do you want to see? |
| Cover period | Longer periods cost more; 10 to 12 years is typical | At inception | Does the period run from practical completion or from first occupation? |
| Point in the programme when you apply | Late applications cost more or are declined outright | Continuously, and this is the big one | What is the latest stage at which you would still take this on? |
| Conversion versus new build | Up for conversions, where existing structure is unknown | Design stage | What is excluded in respect of the retained structure? |
- Latent defects cover is underwritten alongside the build, so the application has to be made before work starts rather than at completion.
- Cover typically runs 10 to 12 years from practical completion, and the exact period is a term of the policy rather than a market standard.
- The inspection regime is a cost and an enabler at once: more inspection raises the premium and is frequently what makes cover available at all.
- Conversions are underwritten more cautiously than new build because the retained structure was never inspected during its original construction.
- A developer's verifiable track record is one of the few drivers that reduces the premium and the only one that cannot be changed before applying.
Cite this page
“What drives the cost of UK latent defects cover, and when each is fixed, 2026”, Latent Defects Insurance Cost, https://latentdefectsinsurancecost.co.uk/ (updated 2026-08-15). This table describes the structure of latent defects and structural warranty cover as written in the UK market and the sequence in which decisions have to be taken. It quotes no premium and no rate, because this cover is rated individually on reinstatement value, construction type, the developer's record and the inspection regime required, and any figure published here would be illustrative rather than an offer. Cover periods are given as the typical range seen in this market rather than as a rule; the period is a term of whichever policy you buy. Where building control and regulatory duties are referenced, those are separate statutory matters from insurance and are pointed at rather than summarised, because they depend on the building and are for your own advisers.
Related guides
Each one cites where its numbers come from.
Questions, answered directly
What is latent defects insurance?
Cover for damage arising from defects in a building's structure that could not reasonably have been discovered at practical completion, typically running 10 to 12 years afterwards. It is also sold as a structural warranty. The important characteristic is that it is a property policy rather than a liability one: a claim does not require proving anybody was negligent, which is why lenders and purchasers value it above a right to sue a design team that may no longer exist.
When do I need to arrange it?
Before construction starts. The insurer is taking a decade-long view on workmanship and needs inspection at the stages when the structure is still visible, so the underwriting runs alongside the build. Once a building is finished that evidence cannot be recreated, and providers will either decline, require intrusive investigation at your cost, or offer cover that excludes the elements nobody saw. Ask any provider directly what the latest stage is at which they would still take the scheme on.
How much does latent defects insurance cost?
We publish no premium, because this cover is rated individually on the reinstatement value, construction type, unit mix, the developer's track record and the inspection regime required, and a figure on a page like this would be illustrative rather than an offer. The drivers are listed on this page with the direction each moves the price and the point in the programme after which each stops being changeable, which is the more useful thing to know before you approach a provider.
Is it the same as contract works insurance?
No, and the two do not overlap. Contract works covers physical damage to the works during construction, from fire, flood, storm or theft, and it ends at practical completion. Latent defects covers damage arising from a structural defect after completion. Contract works responds to a wall being destroyed by fire; it does not respond to the wall having been built wrongly.
Why not just rely on the architect's professional indemnity?
Because it is their policy, not yours, and recovering under it means establishing negligence and pursuing the firm. That requires the firm still to exist and still to be insured a decade later, which is a real dependency: design teams dissolve and policies lapse. Latent defects cover exists precisely to remove that dependency, letting you claim on your own policy for the damage instead.
Does the policy pay if a defect is found but nothing has failed yet?
Usually not, and this is the question that explains most disappointed claims in this class. Most policies respond to physical damage arising from a defect rather than to the existence of the defect itself. Ask specifically whether damage is required to trigger cover, and ask what the excess is and whether it applies per unit or per event, which are very different exposures on a block of flats.
How do I check the provider?
Search both the broker and the underlying provider on the FCA's Financial Services Register, which is free and public, before paying anything. This is a relationship intended to outlast the building work by a decade, so ask who the risk actually sits with: the brand on the certificate and the insurer carrying the risk are not always the same, and it is the second that will be paying in year nine.