Minister for Fair Trading, Victor Dominello, says the NSW Department of Customer Service has accepted the application of Resilience Insurance to offer decennial liability insurance as a form of security under the Strata Building Bond and Inspections Scheme.
“This is a big win for apartment owners and body corporates,” Mr Dominello said.
“Decennial liability insurance provides those living in residential apartment buildings with comprehensive consumer protection for building defects caused by substandard design and building work.
“Decennial liability gives power to the purchasers and body corporates, who will no longer need to prove liability and will only have to demonstrate the damage for assessment.”
Under a decennial liability insurance scheme, developers or builders would take out a policy to cover any potential costs by an owner to fix serious defects of critical building elements for up to 10 years.
NSW Building Commissioner David Chandler OAM said: “The introduction of decennial liability insurance is the latest reform to the building and construction industry which will improve the design and construction of apartment buildings in 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.”
Insurance to cover dodgy unit buildings
IN an Australian first, residential apartment buyers in NSW will be better protected with a new insurance product giving them 10 years’ protection.