What does Latent Defect mean? Read on to discover the definition & meaning of the term Latent Defect - to help you better understand the language used in insurance policies.
A defect that is concealed or inactive. Damage from a latent defect is typically excluded from coverage under all risks property insurance policies. For example, a home owner discovers that his roof is decaying because the shingles were treated improperly with fire-retardant chemicals. The cost to replace those shingles is precluded due to the "latent defect" exclusion. However, if a fire were to ensue, the exclusion would not prevent coverage for the damage from the fire.
We hope the you have a better understanding of the meaning of Latent Defect.