Partly nullifies the House of Lords decision (Pirelli v. Oscar Faber & Partners (1983)) that when property damage occurs the limitation time runs from the time of damage. The Act adds a further three years’ limitation period from the date the damage was reasonably discoverable subject to a ‘long stop’ provision of 15 years from the act of negligence. The claimant’s knowledge of the damage or capability of reasonably discovering it, follows the knowledge’ requirements of the Limitation Act 1980.
Insurance Encyclopedia
Latent defect
A defect that does not present itself right away.
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A defect which is not immediately apparent.
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A hidden flaw that will, in time, cause property damage that is uninsurable. Such damage is uninsurable because the element of chance is no longer present. The property was flawed from the beginning, so the breakdown and damage was inevitable, and not accidental.
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UK: An existing defect that is not apparent or discoverable by reasonable care. For the purpose of decennial insurance, latent defects are ‘defects which have occurred at the time of construction but do not manifest themselves until some substantial time afterwards.
Latent defects insurance
See: Decennial Insurance.
Latent disease
Disease that may lie dormant or undiscovered for years before being diagnosed or discovered, e.g. asbestosis. See LONG-TAIL LIABILITY.