PCC Certificate Vs Latent Defects Insurance: A Developer’s Guide

Navigating the complexities of property development involves numerous considerations, not least of which are risk management and ensuring…

Navigating the complexities of property development involves numerous considerations, not least of which are risk management and ensuring compliance with regulatory standards. In the realm of risk mitigation, two prominent tools often come into play: Professional Consultant’s Certificate (PCC) and Latent Defects Insurance

In this comprehensive guide, we explore the fundamental differences, advantages and drawbacks of PCC certificates and Latent Defects Insurance. We aim to equip developers with the knowledge necessary to make informed decisions, mitigate potential risks, and navigate the intricate landscape of property development.


The Professional Consultant’s Certificate (PCC) and Latent Defects Insurance are both risk management tools used in property development, but they serve distinct purposes and offer different types of protection.


The PCC certificate, formerly known as an Architects Certificate, is a document issued by a professional consultant, usually an architect or engineer, certifying that a construction project has reached practical completion according to the agreed standards and specifications. It signifies that the project is ready for occupation and use.

Latent Defects Insurance, also known as Structural Warranty Insurance, provides comprehensive cover against defects in design, workmanship, or materials that may manifest after the completion of a construction project. It protects against unexpected costs associated with repairing or rectifying such defects.


The PCC certificate primarily certifies the completion of the construction project and is typically valid for six years from the date of certification. However, it doesn’t provide cover for any defects or issues that may arise after practical completion. It merely acts as proof that a qualified consultant with professional indemnity insurance has visited the site at appropriate intervals during the construction phase.

Latent Defects Insurance, on the other hand, covers the cost of repairs or a full rebuild with immediate effect if any structural defects emerge after the completion of a project. This insurance typically provides cover for a specified period, which in our case is 10 years. However, this may rise to 15 years under the Building Safety Act (2022).


Whereas the PCC certificate is issued by a professional consultant involved in the construction project and is provided upon completion of the project, Latent Defects Insurance is typically obtained by the developer or property owner from an insurance provider, such as CIR. As such, it involves a contractual agreement between the insured party and the insurer, with premiums paid to maintain coverage. 


In the vast majority of cases, a PCC certificate simply won’t provide enough cover for new build homes. 

Latent Defects Insurance is still the gold standard for most mortgage lenders. It provides the necessary level of reparation required to rectify defects, offering the homeowner peace of mind for up to a decade.

Another benefit of Latent Defects Insurance is that, unlike a PCC certificate, it doesn’t require proof of negligence. For the homeowner, this provides an added layer of reassurance that they will receive the prerequisite level of cover and repairs regardless of whether or not the issuing consultant goes out of business.


Although a PCC certificate might be an appealing, low-cost, quick solution, it is a much less attractive option for homeowners and mortgage lenders alike. For long-lasting, comprehensive cover against defects, developers would be well-advised to invest in Latent Defects Insurance for total confidence from foundation to finish.

CIR provides Latent Defects Insurance that safeguards your construction project against any potential structural defects and risks. Our Latent Defect Insurance is designed to offer full peace of mind to property developers, ensuring that your investment is protected from construction-related damages, defects and repair costs.

With our proven expertise in the field of risk management, as well as our technical expertise and exceptional customer service, we can help you to mitigate the inherent risks of construction projects. Partner with us for reliable, tailored, and cost-effective Latent Defects Insurance that empower you to build with confidence.

If you need Latent Defects Insurance, get a quote from CIR today.

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