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Latent Defects Insurance
Latent Defects Insurance (LDI) provides long-term, first-party cover for major structural defects that become apparent after a building is completed and occupied. It helps pay for investigation, access, repair and reinstatement of damage caused by hidden defects in design, materials, or workmanship, without needing to prove negligence or chase multiple contractors. LDI is well-suited to developers, owners, strata bodies, and lenders seeking confidence in new builds and major refurbishments.
Quick Benefits:
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First-party protection against hidden structural defects
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Long-term cover (often up to 10 years) without proving liability
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Covers investigation, repair and reinstatement costs
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Increases confidence for lenders, buyers and funding approvals
What’s Covered:
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Structural or load-bearing elements such as foundations, slabs and frames
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Waterproofing or envelope defects leading to resultant damage
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Mechanical or electrical system failures (if included in the policy)
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Investigation, access and reinstatement costs to repair defects
What’s Not Covered:
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Cosmetic or non-structural issues, wear and tear, or maintenance
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Known or disclosed defects identified before completion
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Financial losses unless specifically added to the policy
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Existing buildings outside the insured project scope
Have a project in planning?
Call us at 1300 337 276
Frequently Asked Questions
Q: Do I need this if I’m subcontracting?
A: Developers, owners, strata bodies and lenders seeking protection from costly post-completion defects.
Q: When does it apply?
A: Cover usually starts at practical completion and continues for multiple years, depending on the policy.
Q: How is it different from Contract Works?
A: Contract Works ends at completion, while LDI protects against hidden defects discovered afterwards.