latent defect
A defect that is concealed or inactive. Damage from a latent defect is typically
excluded from coverage under all risks property insurance policies. For example,
a homeowner discovers that his roof is decaying because the shingles were treated
improperly with fire retardant chemicals. The cost to replace those shingles
is precluded due to the "latent defect" exclusion. However, if a fire were to
ensue, the exclusion would not prevent coverage for the damage from the fire.
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