Insurance brokerage remains a mystifying field for the average layman or woman. Much like other branches of the insurance tree, the many complexities of this process tend to evade all but those with some training on the field, and the average insurance policy purchaser usually has a Fortunately, reputable commercial insurance brokers will make sure the process is as as transparent asing to their clients, often going as far as to explain certain specialist terms which form part of the trade & # 39; lingo & # 39;
Latent defect insurance. & # 39; Unlike many other terms in the insurance field, some customers do have an idea of what this term means; , as as as as as explain why latent defect insurance plays an important role in the property insurance brokerage process.
What Is Latent Defect Insurance?
Latent defect insurance, also known as structural warranty guarantee or simply structural as guarantee policies on buildings and other such types of property. Its aim is to protect a policyholder against property damage generated from defects in workmanship , structural planning, design or materials of the building.
Unlike other policies offered by commercial insurance brokers, latent defect insurance does not require proof of fault, just proof of defect, an important nuance which can often help simplify and speed up the insurance process. Similarly, this kind of policy is not dependent on Architects & # 39; Certificates, professional indemnity or collateral warranties, permit policyholders to protect their investment in a more cost-effective manner. Latent defect insurance may not exclusively eliminate costs should Negligence have to be proven against one or more parties, but it nonetheless implies a Lower expenditure for the policyholder than they were otherwise incur in.
When Does Latent Defect Insurance Apply?
Almost any structure is eligible for coverage through latent defect insurance. It is most frequently used to cover the commercial or residential buildings, but it is not unheard of for a policy of this type It is always a good idea for a prospect policyholder to ask and see if and how this type of cover.
What Are The Consequences Of Not Taking Out Latent Defect Insurance?
There is a good reason why most commercial insurance brokers recommend their clients take out this type of policy Protecting the structure with latent defect insurance will, at the very least, give the property However, it does not have any structural defects in it. There is at least place mind, by ensuring a solution is in place. This is the main reason latent defect insurance is important to the structural insurance brokerage process, and so so many commercial insurance brokers advise their customers to contract it.
