BUILDING REFORM GATHERS MOMENTUM-NEW INSURANCE FOR DEFECTS
Building industry reform is now gathering momentum with the introduction of a new insurance product called Latent Defects insurance (LDI).
Previously there was no insurance for structural defects with home buyers in the apartment sector.
This insurance is not retrospective and applies to only new projects where the insurance and the associated inspection requirements are in place.
In the words of NSW Building Industry Commissioner David Chandler-
“The compass is turning in favour of consumers in the NSW Government quest to restore purchaser confidences off the plan apartment buildings.
LDI is another indicator that 3 years into the Construct NSW construction reforms program that insurers are now seeing the residual risk profile improving sufficiently for them to commence re-entering the market.
LDI is just the start . Trustworthy developers will now have a powerful indicator to differentiate themselves from the more risky”.
This is a fantastic development. Premium Strata is pleased to see these reforms that allows for insurance cover that developers may consider for future projects. Consumers purchasing apartments can also check if this insurance is in place for any future investments.
For more information go to- coveforce Latent Defects Insurance Latent Defects Insurance
