Infinity Park, Norwest buyers to get 10-year Latent Defects Insurance
Sydney-based developer Haitchin Group has been approved to include Latent Defects Insurance (LDI) at its Infinity Park mixed-use masterplan project in Sydney’s rapidly expanding Norwest.
Infinity Park is the first and only development in Norwest to offer purchasers the insurance which provides property owners with a 10-year warranty post building completion.
Recently introduced in Australia by Resilience Insurance, LDI has been identified by the NSW Building Commissioner David Chandler as an essential “must-have” for property developers that insures property owners against structural defects for 10 years post building completion.
Consumers have the ability to claim the costs of significant defect rectification directly with the insurer. It also covers the cost of rehousing residents during defect rectification, should it be required.
The insurance positions property developers as ‘market leading’ and following best practice, aimed at giving greater certainty and confidence to off the plan apartment purchasers and a tick of approval that the developer is safeguarding the interests of its future purchasers.
LDI must be taken out by either the developer or builder before construction starts, as the insurance effectively follows the whole project lifecycle and includes a complete examination of plans, specifications and other documentation, as well as monthly audits by independent technical inspectors through to certification of Practical Completion.
Once the 10-year warranty period expires, the strata corporation can transition to new insurance policies to protect their apartment buildings. This is expected to be at a lower premium than would otherwise be charged.
Haitchin’s General Manager Robert Tasveski said LDI provides peace of mind and reassurance to off the plan purchasers at Infinity Park, knowing that they have a 10-year warranty against any structural defects.
“Latent Defects Insurance is intended to prevent the occurrence of structural defects in the first place. Just like car or private health insurance, you hope you never need to use it but if you do, you’re happy you have it,” he said.
“Importantly, its only offered to developers and builders deemed trustworthy by the insurer, Resilience Insurance. In order to receive the insurance, Infinity Park must pass rigorous and regular assessments by independent technical inspectors that ensure the quality of the construction is upheld.
“With the monthly inspections, if they find something that needs fixing, it needs to be rectified before the project proceeds to the next step.”
NSW Building Commissioner David Chandler said the introduction of Latent Defects Insurance is the latest reform to the building and construction industry which will improve the design and construction of apartment buildings in NSW.
“These reforms have come about due to the united commitment of government and industry to transform the NSW construction sector.
“NSW is now in the position of being a national leader in offering an insurance product of this type for Class 2 buildings because of the three years of conscious effort and commitment by Government and industry to the journey we have been on under Construct NSW.
“We’re looking to clean up the market and bring an end to expensive litigations against developers who have deep pockets or subsequently vanish into thin air.”
When completed in mid-2025, the Turner-designed Infinity Park will comprise 290 apartments across three residential buildings. The project consists of a 25-storey tower, Marque, along with two five-storey low-rise buildings, marketed as Alpha and Omega, comprising the most premium two- and three-bedroom apartments in the precinct.
A seven-storey commercial tower, Infinity Commercial, is situated opposite the residential buildings and comprises 95 strata commercial suites including a 193 sqm signature rooftop fine-dining restaurant by acclaimed hatted chef, Joshua Mason.
Haitchin has partnered with construction company CJCA to deliver the project. Independent specialist Construction Consultants Pty Ltd will oversee the construction process.