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 home owner 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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