The advantages of first resort, strict liability, Latent Defects Insurance for off the plan property buyers
Resilience Latent Defects Insurance (LDI) is reshaping the way building defects are managed in Australia, providing the most extensive cover for off the plan property buyers in the market.
What is Resilience LDI?
Resilience LDI is the first Latent Defects Insurance policy in Australia. The insurance provides off the plan apartment buyers with a 10-year warranty for structural and waterproofing defects on both their new apartment and the building it's situated in.
The cover is purchased pre-construction by the property developer or builder and is designed to protect apartment owners against any immediate or future problems with the structural components of their new property, from leaks to cracks and everything in between.
Understanding first resort strict liability Latent Defects Insurance
First resort, strict liability LDI marks a significant advancement in consumer protection in the building industry. Unlike traditional insurance, which requires proving fault or negligence, this insurance operates on a strict liability basis. This means that issues can be addressed without needing to establish fault first—a long-standing problem in new developments. This delay often leaves consumers at a disadvantage, as problems remain unresolved while legal battles drag on, leading to increased costs and frustration
With strict liability insurance, consumers are entitled to compensation without navigating the complexities of proving fault or negligence. This streamlines the claims process and ensures faster resolution, providing consumers with primary coverage for damages resulting from latent defects, without the need to establish fault on the part of the builder or developer.
Further strengthens build quality
Latent Defects Insurance is a key indicator of build quality. Before a policy is issued, the construction process undergoes rigorous inspections by accredited independent experts.
These inspections ensure that any defects are identified and rectified during construction, not after. This proactive approach means that buyers can be more confident in the quality of their new apartment.
Increase apartment value
With LDI, buyers can rest assured that their property is safeguarded against structural defects for a decade after completion. This long-term coverage adds significant value to the property, making it more appealing to future buyers and potentially increasing resale values. Subsequent buyers will benefit from LDI coverage for the remainder of the 10-year policy on their newly purchased apartment.
Latent Defects Insurance is only being offered by Resilience Insurance in Australia. LDI has been a common policy worldwide for over seven decades, with over 40 countries offering LDI to new apartment buildings.
As a buyer, LDI isn't a policy you can take out individually on your apartment. Your new development either has the Resilience Latent Defects Insurance policy or it hasn't. Several of Australia's largest developers, such as Deicorp and Urban Property Group.
