Princeton gives assurances to Marque Rockdale purchasers with 10-year Resilience Latent Defects Insurance
The power of Latent Defects Insurance isn't lost on anyone in the development industry.
Latent Defect Insurance, or LDI, is the new groundbreaking insurance policy being rolled out in Australia by Resilience Insurance. The insurance, which has been around for over seven decades globally, 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.
Developers are benefitting from the policy because they're seeing increased sales rates in some cases, as well as higher value sales, and they're covered financially should any structural defects occur within their building.
But most importantly, by taking out the policy, they're protecting their buyers interests. Buyers don't have to look too further into the policy to see their benefits.
On settlement, they get a 10-year insurance, paid for by the developer, which completely covers them should there be any issues with the structural integrity of the building. The fact the building has Latent Defects Insurance means there's a stronger chance this shouldn't happen, with regular third party inspections to ensure the build is being undertaken correctly.
Now project marketers, those who are selling the apartments, are becoming fully aware of the power of having Latent Defects Insurance has on the development industry.
Ray White Western Sydney Projects Managing Director, Mark Bernberg, says LDI is "simply the greatest thing to happen to a buyer's peace of mind."
"First off - it's insurance of first resort. Unlike car insurance where they first have to determine fault, and then they will start the payout process, LDI pays out first and then looks for where the problems are," Bernberg says.
"To combat this, and to be even more proactive, they have a stringent Technical Inspection Service (TIS) that essentially makes developers and builders jump through hoops and over hurdles to ensure the building is built right, first time, every time, thus preventing major defects and having to pay out on them."
Bernberg is marketing Marque Rockdale, the latest development by financial services firm turned apartment developer, Princeton.
Marque Rockdale will comprise just 58 one, two, and three-bedroom apartments, a handful of which will be SOHO apartments (Small Office Home Office), a hybrid apartment/workspace that will bring a vibrant atmosphere to the street level.
The seven-level building will also feature a communal rooftop herb garden with over 100 sqm of break-out space, a barbecue area, a children's play zone, a pergola-shaded dining area and integrated seating.
"The fact that Resilience Insurance first verify the builder and developer to ensure they meet their customer criteria, should also bring great comfort to the mind of the buyer," Bernberg added.
"If a building has the LDI product then you know it is being built right, from the start through to the finish, and then peace of mind for another decade. That has intrinsic value, and our clients are building that value into their purchasing decisions."
Marque is being built by iCIRT rated builder Coplex who has already started construction. Marque Rockdale is slated for completion in mid-2025.
Speaking with Princeton CEO George Gaddallah earlier this year, he said having Latent Defects Insurance is a "no brainer" going forward.
"We are committed to providing certainty to our purchasers by utilising the best-in-class products that provide peace of mind and warranties for any defects," Gadallah says.
To find out more about Resilience Latent Defects Insurance, click here.
