What counts as a construction defect
Construction defects usually mean faults linked to how the property was designed or built, rather than wear and tear. Think of missing cavity trays, inadequate foundations, poor drainage falls, defective roofing details, or wall ties that were wrongly specified. Sometimes the issue is obvious. Other times it appears years later, when cracks show up or water starts getting in where it never should have.
Insurers tend to group these defects differently from accidental damage. They are treated as inherent problems, not sudden events. That distinction matters, because it shapes what can and cannot be insured.
How insurers view defect-related risk
When a house has known construction defects, insurers focus less on blame and more on exposure. The question is not who caused the defect, but whether it is stable, repaired, monitored, or likely to worsen. A defect that has been properly rectified and signed off is usually viewed very differently from one that remains unresolved.
Disclosure matters here. If defects are known, insurers expect them to be declared. Not because they want to refuse cover automatically, but because undeclared defects can invalidate claims later. That is where problems tend to arise.
What parts of the policy may be restricted
Most policies can still offer buildings and contents insurance for houses with construction defects, but exclusions are common. These exclusions are normally specific, not blanket.
- Damage arising directly from the known defect is often excluded.
- Related issues, such as water ingress linked to poor detailing, may also be excluded.
- Unrelated risks, fire, storm, theft, are usually still insured.
This is why two houses with the same defect can receive very different terms, depending on whether the issue has been addressed properly.
Completed repairs and insurer evidence
Where construction defects have been repaired, insurers usually want evidence. That might include structural engineer reports, completion certificates, guarantees, or confirmation that works were carried out to current standards. The aim is reassurance, not paperwork for its own sake.
Repairs that were done informally, without inspection or documentation, are harder to rely on. Even if the house has behaved perfectly since, insurers prefer proof over anecdotes.
Newer homes and latent defect concerns
Construction defects are not limited to older houses. Newer homes can present their own issues, especially where shortcuts were taken during rapid build phases. Insurers are aware of this and may ask about snagging reports, warranty claims, or ongoing disputes with builders.
A valid structural warranty or evidence that defects have been resolved through formal channels usually makes a difference to how cover is offered.
When insurance has been refused elsewhere
Refusals often happen when insurers feel the risk is unclear rather than unacceptable. Missing reports, unresolved disputes, or uncertainty about the cause of damage are common sticking points. Once clarity is provided, terms may change.
Some insurers specialise in properties with non-standard features or histories. They price and restrict cover differently, but they operate on the same principle, understanding the risk before accepting it.
Mortgage and valuation considerations
Lenders and insurers do not always take the same view. A house may be mortgageable but insured with exclusions, or insured but valued cautiously. Construction defects often sit in that grey area between finance and risk.
Keeping survey reports, repair records, and correspondence organised helps. It does not guarantee broad cover, but it reduces uncertainty, which insurers generally prefer less of.