DCN Group to develop first Bankstown apartment development with Latent Defects Insurance
DCN Group has become the first developer in the Bankstown area to take out Resilience Insurance's Latent Defects Insurance (LDI).
Resilience LDI is a new insurance policy that protects off the plan apartment purchasers for 10 years post-completion of the building, accounting for any structural defects that may occur and covering the costs for buyers.
LDI is obtained by either the developer or builder before construction begins since this insurance covers the entire project lifecycle. It involves a thorough review of plans, specifications, and other documents, along with monthly inspections by independent technical inspectors, extending up to the certification of Practical Completion.
What is Latent Defects Insurance and is it bringing confidence to the off the plan apartment market?
DCN has taken the cover out on their new Bankstown project, The Hoskins, two buildings on Marshall Street with 44 apartments.
DCN Group Managing Director Nadim Saad said getting LDI was a step forward to leading the way.
"As builder-developer company since 1987, we've always stood by our product, and we know what we build is of a high standard. what having LDI does is it tells prospective buyers we are backing ourselves that our product is of high quality and that we're not going to cut and run when the project is finished."
LDI is only offered to developers and builders deemed trustworthy by the insurer, Resilience Insurance. To receive the insurance, the development must pass rigorous and regular assessments by independent technical inspectors SDSS to ensure the quality of the construction is upheld.
DCN was the second developer in Sydney to take out LDI, shortly after Urban Property Group.
"It's a great leap for the industry," Nadim says, with the insurance coming off the back of more accountability that has come in the off the plan development market from the Building Commissioner.
Saad says buyers are starting to become more educated on the off the plan apartment market.
While not yet in market, a prospective purchaser stopped at the site of The Hoskins, at 78-80 Marshall Street, and asked if they were iCIRT-rated and if they had LDI.
"It's not just about buying an apartment off the plan and hoping it gets built to the standard that you're promised. Now there are safeguards in place so that shouldn't happen, and buyers are now starting to understand what developers should have in place to protect their investment."
DCN Group has partnered up with construction consultants and SDSS to oversee the construction process.
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 on their new apartment and the building it's situated in.
The cover is purchased by the property developer/builder (pre-construction) and is designed to protect owners against any immediate or future problems with the structural components of their new property, from leaks to cracks and everything in between.
For more information about Resilience LDI, click here.
