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.
Additional Information
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.
Synonyms
latent defects insurance
