Kaksi rakennusmiestä keskustelevat työmaalla, jossa rakennusvirhevakuutus on kunnossa.

Latent defects insurance

Coverage for latent building defects in case the founding shareholder becomes insolvent.

Secures the position of the shareholder and the housing company

When a latent defect is detected in the building and the founding shareholder has become insolvent, the insurance covers some of the founding shareholder’s obligations.

Insurance required by the Housing Transactions Act

Valid latent defects insurance is the precondition for selling new apartments and apartments renovated into modern apartments.

Easy to ask for an insurance quote

When your building permit becomes legally valid, send a request for a quote to Pohjola Insurance. We will contact you within a few working days once the insurance quote we have drawn up is ready.

Request a quote

Provides coverage for the founding shareholder in case of insolvency

Latent defects insurance, i.e. insolvency insurance, provides security in case the founding shareholder becomes insolvent. The insurance fulfils the requirements of the Housing Transactions Act, according to which anyone starting to build housing must have insurance or other guarantee for the construction project.

Insolvency insurance protects buyers in new apartments and renovated apartments sold as new apartments against the founding shareholder’s insolvency. It covers latent defects for 10 years in case the founding shareholder becomes insolvent.

Latent defects insurance covers latent defects caused to the housing company and buyers due to the insolvency of the founding shareholder’s builder or construction company.

Pohjola Insurance’s responsibility for latent defects begins from the building's annual inspection and ends 10 years after the final inspection approved by the building control authority.

For whom is latent defects insurance intended?

You need latent defects insurance when acting as the founding shareholder in a construction project when selling new or renovated apartments to consumers. Latent defects insurance is mandatory insurance that must be taken out by the developer acting as the founding shareholder or by the construction company. The founding shareholder is the party that subscribes or otherwise owns the shares during the construction phase.

We recommend that you request a quote as soon as your company has received a building permit and decided to begin the construction project.

Pohjola Insurance’s Latent Defects Insurance fulfils the requirements of the Housing Transactions Act

Under the Housing Transactions Act., anyone starting a construction project must have an insolvency guarantee for the project. Collateral under the RS system of the Housing Transactions Act can be insurance, a bank guarantee or a guarantee that fulfils the terms and conditions confirmed by the Finnish Competition and Consumer Authority. Usually, insurance must already be in place in the construction phase.

Pohjola Insurance’s Latent Defects Insurance fulfils the Housing Transactions Act's requirements and covers your construction business in case of insolvency.

Developer’s responsibility for latent defects

The responsibility of the developer and the founding shareholder of a new housing company does not end with the annual inspection. The developer is responsible for the faults and defects of the building for as long as ten years. Faults and defects of this kind are those shown to be due to failure to adhere to good construction practice and appearing within ten years after administrative responsibility for the housing company was transferred to the shareholders. Latent defects insurance as part of the RS system brings security to both the shareholder and the company.

What does latent defects insurance compensate?

Latent defects insurance covers the following should the founding shareholder become insolvent:

  • losses to the housing company and buyers caused by latent defects appearing after the annual inspection
  • the investigation and repair expenses of a latent defect
  • the extra housing expenses of the buyer of a share and of his/her family for the period when the apartment could not be used.

Together with our expert, you ensure that all risks related to your business are sufficiently covered. We’ll go over your company’s needs and offer a personalised insurance cover. Request a quote from us for latent defects insurance for your company. We will contact you as soon as possible.

Nainen ja mies juovat kahvia ulkona ja keskustelevat kiinteistövakuutuksesta, joka toimii yrityksen ja taloyhtiön omaisuuden turvana.
Real Estate Insurance
Comprehensive insurance to protect the property of your company or housing company.
Latent Defects Insurance, terms and conditions
The insurer is Pohjola Insurance. The losses will be covered in accordance with the law and the insurance terms and conditions.