BRC Insurance Agents, Subagents and Consultants Ltd (BRC), was incorporated in Limassol Cyprus in 2010 and is owned by a London-based British Development Group. Limassol was chosen, due to its dynamics in Land Development.

Its core Insurance product is Latent Defects Insurance (LDI), from Premier Guarantee UK.
LDI originated in France in the early ‘90s and later spread to other European countries. Currently, Spain, Italy, Denmark, Finland, Sweden, Norway, The Netherlands and Germany have adopted LDI as a compulsory product before obtaining the final building permit. In the UK, LDI is controlled by the financial institutions.

Latent Defects are defects and faults that are not detectable, visible and/or apparent during the construction period, caused by faulty architectural and/or static designs, workmanship and materials.

As a result, this insurance product covers the damage that might occur from any architectural designing and/or Civil Engineering design error or negligence as well as from faulty materials, that is not seen during placement. Furthermore, it covers damages that might occur through any error and/or negligence from the contractor’s side.

While it may appear to be insurance for the client, it is not, as the Director and General Manager of BRC, Xanthos Nemitsas explains.
“Before quoting to the client, our engineers in the UK examine all drawings and QS calculations and the geotechnical survey of the land”, he says.
“When construction starts, we monitor all its phases in detail with our construction engineers and we report electronically with details and images  to all persons  involved in the project , thus creating a record of the construction of the property. We emphasize issues such as wall humidity and waterproofing and, at the same time, we consult the client if needed”, Nemitsas explains.

Once construction is completed, a 10-year coverage certificate is issued, which is transferable to the new owner in the event of a sale. It is both an extra set of qualified eyes ensuring that all the designed specifications become reality as well as a 10-year insurance scheme at an approximate cost of 1.2% of the Total Construction Cost.