Protecting the building owner and occupier – latent defects insurance or collateral warranties?

Examines the respective concepts of collateral warranties and latent defects insurance, and the strengths and weaknesses of each arrangement. Discusses the objective or protecting owner and occupier, the collateral warranty matrix, building‐specific advantages of LDI, and recent events in the LDI market. Concludes that the inherent uncertainties in collateral warranties are likely to result in increased appreciation and demand for latent defects insurance.