Why Deicorp is rolling out Resilience Latent Defects Insurance across its major Sydney apartment developments

When prominent Sydney developer Deicorp, one of the largest apartment developers in Australia, heard of a new way of giving their customers confidence in buying off the plan, their interests were immediately piqued.

The new game-changing policy is Latent Defects Insurance, only offered in Australia by Resilience Insurance. Resilience Latent Defects Insurance, or LDI, covers an off the plan property buyer for 10 years post-completion for any costs associated with structural defects in their new apartment and the building as a whole.

Read more: What is Latent Defects Insurance and is it bringing confidence to the off the plan apartment market?

Deicorp is such a huge advocate for consumer confidence that they've taken the policy out on three of their current apartment developments, The Hyde Metropolitan on Hyde Park, Downtown in Zetland which is approaching completion, and their recently launched Cosmopolitan Parramatta project.

Deicorp Executive Manager of Corporate Communications, Robert Furolo, says they know from talking with their buyers that one of the biggest factors that help them make their decision is whether they trust the developer.

“With our 4-Star Gold iCIRT rating and strong track record, buyers know that Deicorp stands behind every apartment we build, and we’ll be here with them should there be any problems," Furolo says.

“Another factor that has really helped buyers feel confident when making their decision is the new 10-year insurance coverage Deicorp now provides. Importantly, the insurance is only offered to a developer after a rigorous and independent inspection of their building during construction to make sure it has been built properly. Buildings with LDI give purchasers another level of confidence when buying off-the-plan."

Deicorp is in the final stages of construction at Downtown Zetland, their four-building, laneway-laden community with extensive retail and hospitality. All but sold out, the 546-apartment development will be one of the first to be completed with Resilience LDI. The policy kicks in on construction completion and lasts for 10 years. The policy passes to the next owner, should the initial purchaser sell their apartment within the first 10 years of the building being finished.

Resilience Insurance CEO Corey Nugent says interest in the policy from Deicorp chairman Fouad Deiri was immediate.

"Despite Deicorp already having one of the best reputations in the apartment development market, Faoud wants to continue to give consumers the assurances that what they're building is both structurally sound and delivered to the standards promised when purchased off the plan. 

"It's that sort of attitude that the industry needs and will give some much-needed confidence to prospective buyers that off the plan apartments are a solid investment option."

The policy can only be taken out before construction commences on a building so Resilience and its team of experts are on the ground from the get-go.

Deicorp has LDI already secured for their two developments in Sydney's largest CBD's.

Their Hyde Metropolitan tower on Liverpool Street, on the fringe of Hyde Park, is expected to complete construction in late 2028. The Candalepas Associates-designed building will replace the old Polding Centre on a prime 1,600 sqm site and will have 168 apartments across 55 levels.

Deicorp's other project with LDI is in Parramatta. The recently launched Cosmopolitan by Deicorp will comprise 600 apartments across two 45-level towers designed by Turner Studio. 

Cosmopolitan includes a new retail village hub, extensive retail and hospitality frontages, and an open-air community space with barbecue facilities and group gathering areas.

Deicorp has even taken the policy out on Rumbalara Residences, the Gosford apartment development where they're acting as the builder for Alceon.

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.