NSW off the plan apartment buyers to be offered 10-year defects insurance

NSW off-the-plan apartment buyers will be offered 10-year insurance against defects in their building

NSW off the plan apartment buyers to be offered 10-year defects insurance
NSW off the plan apartment buyers to be offered 10-year defects insurance

NSW off-the-plan apartment buyers will have 10-year insurance against defects in their building.

The NSW Government is taking the step to better protect apartment buyers via the introduction of decennial liability insurance (DLI) into the Australian market.

Minister for Better Regulation and Innovation Kevin Anderson said the reform will explore the potential for insurers and developers to provide an insurance safety net for consumers that is currently lacking in the multi-unit high rise sector.

“Establishing a market for DLI would will mean untrustworthy developers are weeded out, creating a stronger, more competitive market where consumers can purchase with confidence,” he said.

The NSW Government is currently considering whether property developers will be either invited or ordered to take out the new (DLI) for their apartment complexes.

“DLI is a special type of insurance taken out by the developer to guarantee against major defects for up to 10 years, which is not currently available in Australia,” Mr Anderson said.
 
The aim is for buyers to have confidence and peace of mind over the buildings that are built in NSW, said Mr Anderson when announcing the proposal of the new scheme. 

“For too many years, we’ve been seeing and hearing of people losing their hard-earned money on apartments, or their deposits, with developments that have defects or go broke or don’t proceed,” said Mr Anderson.

“But what we are seeing now is the insurance market coming into high rise on the back of the reforms in the industry. This is the end piece of all the work we’ve been doing. It’s very exciting as we’re now going to see an uplift in people having confidence in the market and buying off the plan.”

The NSW Government announced a specialist Ministerial Advisory Panel to advise on the introduction of decennial liability insurance (DLI) into the Australian market.

The panel will be chaired by past Insurance Council of Australia president Gary Dransfield with other members including:

·        Michael Bennett - General Manager, Property & Construction Finance, Commonwealth Bank of Australia

·        Albert Chan - Executive Director, Meriton Group

·        Michael Corcoran - Co-founder and Executive Director, Solido Development Finance

·        Chris Duggan – President, Strata Communities Association (NSW)

·        Stefan Hicks – Founding Director, SHC Insurance Brokers,

·        Chris Kelly - Construction Manager, Billbergia

·        Darren Maher - Chief Underwriting Officer, IAG

·        Steve Mann – Chief Executive Officer, Urban Development Institute of Australia NSW

·        Corey Nugent - Senior Operations Manager, Insurance Council of Australia

·        Fabrizio Pirelli - Chief Executive Officer, TOGA Development

·        Jessica Rippon - Principal Solicitor, Construction Legal, representing the Owners Corporation Network

·        Nicholle Sparks - General Manager, Frasers Property Australia

·        David Tanevski - Managing Director, KWC Capital Partners, and Founding Director, Urban Taskforce
 

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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Sydney Apartments

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