Machinery Inherent Defects Insurance

Machinery Inherent Defects Insurance

Elements of communal developments can sometimes carry additional risks to developers and these may not currently be covered under your Buildmark warranty and insurance product.

To help bridge this gap, NHBC, in conjunction with HSB Engineering Insurance a market leading underwriter of engineering risks, are able to introduce to you Machinery Inherent Defects Insurance. There are two versions of this product, one covering apartment developments and one covering district heating services. Both products are underwritten by HSB Engineering Insurance but complement our Buildmark product providing you with the means to manage these additional risks.


The removal of reliance on collateral warranties

Technical audits are undertaken during installation to reduce the risk of potential defects.**

Policies are fully transferable to future owners

The availability of funds for repairs following the discovery of a defect

No aggregate claims limit over the lifetime of the policy

Enhanced tenant confidence, making it easier to rent

* Exclusions and conditions may apply. Please refer to your policy wording for further information.

** Technical audits are provided and charged for separately to the insurance by HSB Engineering Insurance Services Limited.

HSB Engineering Insurance

Leading specialist

Leading specialist provider of engineering insurance and inspection services in the UK.

Since 1866

UK-based arm of Hartford Steam Boiler, the equipment breakdown insurance and inspection market leader since 1866.

Financial Strength

Rated A++ (superior) by A.M Best Company* *Correct as of July 2019

Machinery Inherent Defects Insurance (Apartments)

This insurance product covers actual or impending damage caused by an inherent defect to the mechanical and electrical services, which existed prior to practical completion of the building including:

Boilers, space heating, ventilation and air conditioning systems

Lifts and escalators

Building maintenance units

Electrical distribution systems

Equipment used for building security and environmental control

Electrical and mechanical parts of water pumping, pressurisation and distribution systems

The period of cover is 10 years. HSB will not pay for any damage caused by wear and tear, gradual deterioration, rust, or any fault known about at the start of the period of insurance. Additional cover is also available for the loss of rental income suffered as a result of a defect.

Further information

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