Latent Defect
Definition:
A hidden flaw in property that is not visible during normal inspection.
Explanation:
Latent defects are often excluded from coverage because they are considered pre-existing conditions. Insurers usually only cover sudden and accidental damage.
Example:
A hidden crack in a foundation that later causes collapse is considered a latent defect, and may not be covered.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.