A latent defects insurance consultant is an FCA-authorised broker or appointed representative who arranges structural warranties for new build and conversion projects. These policies - also known as latent defects insurance or new build warranties - provide 10-12 years of insurance-backed cover against structural defects in the building's foundations, structure, roof and weatherproofing. Unlike an NHBC Buildmark warranty (which is both an insurance product and a builder registration scheme), independent latent defects policies can be arranged through specialist brokers who compare products from multiple approved providers, enabling developers, self-builders and housing associations to select cover that fits their project type, budget and lender requirements.
What they do
- Assess the project and identify suitable structural warranty providers
- Compare premium quotes and policy terms from multiple approved insurers
- Arrange and manage technical audit inspections during construction
- Liaise with the appointed technical auditor on behalf of the developer
- Obtain lender approval for the chosen warranty product
- Issue policy documentation acceptable to conveyancers and mortgage lenders
- Advise on retrospective warranties for completed properties without cover
- Arrange commercial structural warranties for non-residential projects
- Handle claims during the policy period
When you need one
A latent defects insurance consultant is needed when a new build or conversion project requires a structural warranty acceptable to mortgage lenders, or when an NHBC Buildmark warranty is not suitable or available.
Typical costs (UK, 2025)
| Job type | Typical cost |
|---|---|
| Warranty premium | 0.5 - 1.5% of rebuild cost |
| Technical audit fees (third-party inspector) | £800 - £2,000 |
| Broker arrangement fee | £300 - £800 |
| Retrospective warranty (older properties) | Higher premium - POA |
| Commercial structural warranty | POA |
Premium rates depend on build value, construction type, the appointed contractor's track record and the insurer's assessment of risk. Technical audit fees are usually paid separately direct to the appointed inspector. Always confirm lender approval before committing to a specific warranty product.
Frequently asked questions
What is latent defects insurance?
Latent defects insurance (also called a structural warranty or new build warranty) provides 10-12 years of cover against structural defects in a newly built or converted property. Unlike a builder's warranty, it is an insurance policy that pays out regardless of whether the builder is still trading or able to pay. Most mortgage lenders require either an NHBC Buildmark warranty or an equivalent approved structural warranty before they will lend on a new property.
What providers offer latent defects insurance?
UK providers include NHBC Buildmark, Premier Guarantee, Build-Zone, LABC Warranty, ABC+ Warranty, Protek, and Advantage HCI. All must be approved by major mortgage lenders. An FCA-authorised broker can compare products and arrange cover from multiple providers - they often have access to insurers not directly available to self-builders or small developers.
Is latent defects insurance the same as a structural warranty?
Yes - the terms are used interchangeably. Latent defects insurance is the technical insurance industry term; structural warranty or new build warranty is the term more commonly used by conveyancers and mortgage lenders. All refer to the same product: an insurance policy providing long-term (typically 10-12 year) cover against structural defects in a newly built or substantially converted property.