Warehouse latent defects insurance
A structural warranty for a new warehouse - usually 10 or 12 years of cover for the frame, the roof and cladding and, where included, the floor slab, usually assignable to the next owner or tenant.
- Instant response
- Insurer quotes usually within one working day of your proposal
- UK FCA Regulated Broker
- No broker fee to pay
- Trade counters to big-box logistics
Why it matters
Why warehouse owners and occupiers want latent defects cover
A warehouse looks simple - a frame, a slab, a roof and walls of cladding. But every one of those elements is large, and each is hard to get at once the building is fitted out, racked and working. A defect that shows itself a few years after completion can mean closing aisles, moving stock and working around repairs.
Warehouse latent defects insurance pays for putting right damage caused by a hidden defect in the design, workmanship or materials, within the terms of the policy. It usually does not depend on proving who was at fault, or on the contractor still being in business, which is what makes it attractive to buyers, funders and tenants.
Cover is simplest to arrange when the warehouse is registered before work starts on site, so the provider's surveyor can see the ground works and the slab before they are covered up.
What is usually covered
The parts of a warehouse the policy looks after
Every policy wording is different, and the quotation and policy wording set out exactly what is included. As a general picture, cover on a warehouse tends to fall into these areas.
The structure
Foundations, the steel or concrete frame, load-bearing elements and the connections that hold them together.
The weatherproof envelope
Roof sheeting and coverings, cladding panels and the other parts that keep the weather out, on many policies.
The floor slab
Included by some policies and some insurers, sometimes with conditions. Where the slab matters to the use of the building, we make sure you know how it is treated before you commit.
Optional extensions
Some insurers offer extras such as loss of rent or mechanical and electrical cover. They are not standard, and they add to the premium.
What underwriters look at
The warehouse risks a provider will ask about
- Ground conditions - the site investigation, any made ground and how the foundations and slab have been designed for it
- The floor slab - loadings from racking and vehicles, joint layout and the specification for cracking and flatness
- Roof and drainage - falls, gutters, rooflights and how water is taken off a large roof area
- Cladding - the system, how it is fixed and how joints and openings are detailed
- The frame - the structural engineer's design, spans and connections
- The team - the contractor, the design team and their record on similar buildings
Who needs it
Speculative, pre-let or built for your own use
Speculative developers
A warehouse with cover in place can be easier to sell or let, and it answers a question buyers and tenants often ask.
Pre-lets and forward funding
The tenant or the funder may make latent defects insurance a condition of the deal. Registering at the start keeps the programme on track.
Owner-occupiers
If you are building for your own business, cover helps protect the building you will depend on and helps if you later sell or refinance.
Warehouse latent defects insurance questions
Does latent defects insurance cover a warehouse floor slab?
Sometimes. Some policies include the slab and some treat it as an option or add conditions. It depends on the insurer and the wording, so we confirm how the slab is covered before you commit.
When should we arrange cover for a new warehouse?
Before work starts on site. The provider needs to see the ground works, foundations and slab as they go in. Cover for a warehouse already under way is sometimes possible, but it is harder, costs more and needs more evidence.
Can the cover pass to a buyer or tenant?
Often, yes. Many policies can be assigned to later owners and to tenants for what remains of the period, which is useful when the warehouse is sold or let on a repairing lease.
What does warehouse latent defects insurance cost?
As a rough guide, around 0.95% of the rebuild cost for a commercial building registered before work starts (with no broker fee on top - we are paid by commission from the provider). The provider sets the final price after reviewing the scheme. See industrial warranty costs.
Get a warehouse warranty quote
Tell us about the warehouse, the rebuild cost and your programme, and we will come back with the underwriters likely to cover it.
- Takes under a minute
- Instant reply by email with your reference
- Insurer quotes usually within one working day of your completed proposal
- Sites anywhere in England, Scotland, Wales and Northern Ireland
- Free and no obligation
Already filled in a proposal form? Email it to us or send it on WhatsApp with any drawings you have and we will take it from there.
