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inherent defects insurance IDI

Inherent defects insurance is a first-party property insurance sold mostly in Europe that covers physical damage or imminent collapse of newly constructed property caused by faulty design, engineering, workmanship, or materials in load-bearing elements such as foundations, columns, walls, floors, beams, roofs, and land improvements.

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Unlike standard property policies, which only cover damage from inherent defects if damage is caused by a covered peril, inherent defects insurance is triggered by the mere existence of a defect. Inherent defects insurance provides a mechanism for reducing or avoiding construction defects litigation. In most cases, the policy is issued for a 10-year noncancellable term.


latent defects insurance