Rakennusvirhevakuutus-kuva

Latent Defects Insurance

Protection against housing production risks and insolvency

Did you know that anyone starting a build housing must under the Housing Transaction Act have an insolvency guarantee? Pohjola Latent Defects Insurance fulfils the Housing Transaction Act's requirements and covers you in case of insolvency.

Latent Defects Insurance

  • is required from the builder or construction company that is a housing company's founding shareholder.
  • comes into force once you have paid the insurance premium.
  • compensates to the housing company and buyers any latent defects caused by your insolvency.


We recommend that you make an invitation to tender as soon as your company has received a building permit and decided to begin the construction project. Once you have sent us the necessary details, we will send you an offer within five business days.

Latent Defects Insurance compensates

  • the inspection and repair expenses of a latent defect.
  • extra housings costs of the housing buyer's and his/her family's housing costs during the time when the home cannot be lived in.


The requirement for compensation is that

  • your company, in the capacity of founding shareholder, is liability for compensation, and has been found insolvent.
  • no other guarantee will cover the loss.
  • Pohjola Insurance is informed about the loss during the indemnity period.