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YOUR FMB COVER FOR YOUR BUSINESS
Latent defects insurance is key to client confidence, says FMB Insurance Account Support Manager Jade Alger FUTUREPROOF YOUR BUILDS
Y ou take pride in delivering quality work. Your projects meet building regulations, pass inspections and leave clients satisfied. But even with meticulous craftsmanship and best practices, some problems don’t appear until long after the build is complete. That’s why latent defects insurance (LDI) should be an essential part of your toolkit, protecting the homeowner and acting as a business asset for you to maintain your reputation long after handover. Why it matters LDI protects against major structural defects that weren’t visible – or even detectable – during the building process. Think foundation movement, structural failure or water ingress due to construction-related faults that only surface years later. While it’s your client who benefits from the financial protection, it’s your name that’s attached to the project. A latent defect that goes uncovered can damage your reputation, especially if the client gets in touch expecting you to resolve something that wasn’t foreseeable. p y expecting you to resolve at wasn’t foreseeable. DI shows that esponsibility ng the client’s case the project planned. Providing LDI shows that you’ve taken responsibility for safeguarding the client’s investment in case the project doesn’t go as planned.
protection before practical completion, including deposit cover. ● Defects insurance period – typically the first two years after completion, during which the builder or developer remains responsible for resolving issues. ● Structural insurance period – the remaining eight to 10 years of cover, during which the insurer steps in for major defects. These phases ensure a smooth handover of responsibility and a clear path for the homeowner if something serious does arise. Secure clients’ peace of mind Increasingly, homeowners, self-builders, and even small developers expect structural cover as standard and, in
How do I find out more? FMB Insurance can manage all of your business protection needs under one roof, delivering the right policies for the right situations. Insurance and warranty products include contract works insurance, public and employers’ liability insurance, building work guarantees, unoccupied property LDI covers the unexpected, but it also helps you to build trust with your clients, further emphasising the professional standards that FMB members are known for. Being protected with this type of insurance helps you to hand over every project with confidence, knowing you’ve covered all of your bases. y the property more marketable and demonstrate that you build to a professional standard backed by recognised insurers. It’s a point of reassurance for clients and a competitive advantage for your business. LDI is underwritten on a project-by- project basis. Insurers will look at the complexity of the build, construction methods used, and the reinstatement value. You may need to provide technical drawings, structural calculations, and project specifications as part of the application process. The process is straightforward and the FMB Insurance team will guide you every step of the way. How do I FMB Insurance can protection needs un policies for the righ products include and employer building wo
many cases, lenders require it. Without LDI, a home that’s less than 10 years old may face issues with mortgage approval or resale. By providing this cover, you make yp g y
Three phases of protection LDI usually runs for 10-12 years post-completion and is broken down into three phases: ● Work in progress cover – optional es of ns for 10-12 mpletion down ses: ogress tional
insurance, and more. Call 01353 652 760 or email insurance@fmb.org.uk for more information on how to protect your business. unoccup insuranc 01353 6 insura for m on h you
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Master Builder
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