Latent Defects Insurance

Latent Defects Insurance (LDI) is a game-changer for anyone looking to purchase a brand-new or off-the-plan apartment in Australia. This insurance policy, which can only be taken out by developers or builders (not individual apartment owners), offers a 10-year warranty on new apartments. It covers the cost of fixing any structural defects that may arise in the building.

So far, LDI has seen strong adoption from developers, with companies like Deicorp, DASCO, and Urban Property Group using it to provide their buyers with added peace of mind when purchasing off-the-plan properties.

I recently had the opportunity to sit down with Corey Nugent, CEO of <a href="https://www.urban.com.au/news/resilience-latent-defects-insurance">Resilience Insurance</a>—Australia’s only provider of LDI policies—to discuss the ins and outs of the important coverage.

<h2>How has Latent Defects Insurance (LDI) been received since its introduction in Australia?</h2>

Latent Defects Insurance is a crucial component for the future of Australia’s built environment.

Also known as Decennial Liability Insurance, LDI has been part of the new development landscape in Europe and other regions for over seven decades. In countries like France, Italy, Spain and Finland, it is mandatory for all new buildings—whether residential or commercial—to carry LDI coverage.

Since its <a href="https://www.urban.com.au/expert-insights/buying/the-evolution-of-latent-defects-insurance-worldwide-and-its-nationwide-availability-in-australia">rollout in Australia</a>, LDI has been very well received by developers, lenders providing financing to those developers, and most importantly, by buyers. It has quickly become an essential tool in building trust and ensuring long-term security for all parties involved.

<h2>What happens when the building is completed?</h2>

Once the building is complete, buyers move in, and LDI is applied to their apartment, as well as the entire building structure, for a period of 10 years. This coverage not only offers peace of mind but can also increase the resale value of the property. Importantly, the policy stays with the apartment, not the owner.

So, if an off the plan buyer decides to sell within the first 10 years, the remaining coverage is transferred to the new owner.

<h2>How does LDI benefit developers?</h2>

Developers see several key benefits from Latent Defects Insurance. The most obvious is that it makes their project more attractive compared to others that don’t offer LDI. Many buyers are willing to pay more for the assurance that comes with LDI, and developers often see faster sales as a result. Research, including studies by Urban, shows that over 60 per cent of buyers are willing to pay an additional 1.5 per cent for LDI coverage. This premium often more than covers the cost of the policy for the developer.

Typically, developers pay about 1.5 per cent of the build cost for the policy. However, if they can secure a higher sale price on their apartments due to the added value of LDI, they end up profiting. Another benefit is the added appeal LDI gives to a development, positioning it as a more secure investment for potential buyers.

Finally, LDI provides developers with an <a href="https://www.urban.com.au/expert-insights/latent-defects-insurance-101-what-is-the-technical-inspection-service-tis-program">extra layer of protection through the Technical Inspection Service (TIS)</a>. This third-party oversight ensures quality control throughout the build, which could otherwise cost developers hundreds of thousands of dollars in additional personnel. The TIS helps catch potential issues early, preventing future liabilities.

While the insurance is designed to protect the buyer, it also safeguards the developer. Should any structural, waterproofing, weatherproofing or MEPS (mechanical, electrical or plumbing systems) issues arise, the developer is covered for out-of-pocket costs. Developers understand the importance of completing projects smoothly and moving on to the next one without lingering problems. Given the large number of trades involved in constructing new buildings, LDI offers significant peace of mind.

<h2>How does LDI benefit buyers?</h2>

In Sydney, past incidents like the Mascot and Opal Towers issues have left many buyers wary of off the plan purchases. While these events occurred over six years ago, they still <a href="https://www.urban.com.au/news/what-is-latent-defects-insurance-and-is-it-bringing-confidence-to-the-off-the-plan-apartment-market">impact buyer confidence today</a>. However, the new development market is much stronger now, with stricter checks and regulations in place. Ultimately, Latent Defects Insurance provides protection for all parties.

In rare extreme cases, where residents may need to vacate due to major defects, <a href="https://www.urban.com.au/expert-insights/building/the-advantages-of-first-resort-strict-liability-latent-defects-insurance-for-off-the-plan-property-buyers">LDI offers first-right protection</a>, ensuring buyers are financially covered. Thanks to the continuous inspections carried out by TIS throughout the construction process, such situations are unlikely to occur, but LDI is there as a safety net if they do.

Since its rollout in Australia, LDI has been very well received by developers, lenders providing financing to those developers, and most importantly, by buyers

Joel Robinson

Latent Defects Insurance 101: How off the plan developers and buyers both benefit from Resilience Insurance LDI

When the development team at Scion was offered the opportunity to acquire an apartment project in Lane Cove North that was half-built, they had to be sure they knew what they were getting in for.

It was the first time the developer, which has its own building arm, was taking over a building that had already commenced construction.

[smartcode_project:default project_id=136108 project_image_fid=303412]

Their minds were set at ease instantly when they were told the development had Latent Defects Insurance and had undergone the technical inspection service program by reputable industry experts since commencement. Sebastian Jabbour, Director of Operations at Scion, says it gave the team confidence to take on the project.

“Because we weren’t the developer who had brought on Latent Defects Insurance, we weren’t fully aware of all the benefits that came with LDI,” Jabbour says.

“It was remarkable how thorough the building inspections by the Technical Inspection Service were. It meant we had a third party ratifying the part of the build process we weren’t a part of - which was really the driver in us getting involved in the project.”

Scion is approaching completion of The Sterling, the first development in Lane Cove North with LDI. The 50 one, two and three-bedroom apartments which start from $750,000.

[smartcode_project:default project_id=136108 project_image_fid=303417]

Jabbour says he was also surprised as to how much impact it had on buyers, a sentiment echoed by Mark Bernberg, Ray White Projects Western Sydney Managing Director.

“We’ve got purchases who are literally buying because of LDI,” Bernberg says.

Scion’s experience with Latent Defects Insurance has seen them take it out on their upcoming new development, Chatham West Ryde, which will also be the first new apartment project in West Ryde with LDI.

[smartcode_project_cta:default project_id=136108]

Sebastian Jabbour says he was also surprised as to how much impact it had on buyers, a sentiment echoed by Mark Bernberg, Ray White Projects Western Sydney Managing Director.

Sterling success: How LDI boosted confidence for Scion and its buyers in Lane Cove North

Resilience Latent Defects Insurance (LDI) is not just an essential safeguard for structural integrity—it’s becoming a defining factor in how properties are valued, sold, and perceived in the market.

With Australia witnessing a gradual adoption of Resilience LDI, insights from international markets reveal a clear trend: properties with LDI sell faster, command higher prices and maintain stronger resale values.

This shift is beginning to reshape valuation assessments and market dynamics across the Australian property sector.

The Impact of LDI on Property Valuations

In countries where LDI is well-established, such as the UK, Saudi Arabia, USA and France, properties backed by LDI consistently demonstrate higher valuations compared to those without. The reasons are clear:

- Reduced Financial Risk: LDI protects against costly latent defects, offering buyers peace of mind that any structural issues will be covered without financial disruption.

- Enhanced Buyer Confidence: Knowing that a property is backed by LDI assures buyers of its quality and reduces hesitation during the purchasing process.

- Stronger Financing Terms: Properties with LDI are often viewed more favourably by financiers, enabling smoother and faster transactions.

In the UK, residential developments with LDI sell faster than those without, with a price premium of four to five per cent, depending on location and building type. This demonstrates the strong correlation between LDI and marketability.

Faster Sales and Higher Prices

LDI-backed properties have a significant competitive advantage in the marketplace. These projects:

- Attract More Buyers: With concerns about structural and waterproofing issues removed, buyers are more willing to invest in LDI-backed properties, particularly in high-density developments.

- Sell Quicker: The assurance LDI provides reduces the decision-making time for buyers, allowing properties to move faster through the sales pipeline.

- Achieve Premium Pricing: Buyers are often willing to pay more for the assurance that LDI offers, viewing it as a long-term investment in quality and reliability.

Australian developers who integrate Resilience LDI into their projects are already beginning to see similar trends. In a market where buyer caution has grown due to high-profile defect cases, Resilience LDI offers a competitive edge.

Robust Resale Values

LDI doesn’t just impact the initial sale of a property—it also has long-term implications for resale value. Properties with LDI maintain stronger resale prices for several reasons:

- Continued Coverage: LDI policies provide coverage for 10 years, giving subsequent buyers the same peace of mind as the original purchasers.

- Perceived Quality: The presence of LDI signals a higher standard of construction, which translates into higher buyer confidence even years after completion.

- Lower Risk for Investors: For property investors, the reduced risk associated with latent defects ensures that the property remains a stable and attractive asset.

The Australian Context: A Shift in Valuation Assessments

Australia’s valuation assessments are beginning to reflect the influence of Resilience LDI. Properties with Resilience LDI are increasingly being viewed as lower-risk investments, prompting valuers to assign higher values compared to similar projects without such coverage. This shift is particularly notable in:

- Multi-Residential Developments: Given their complexity and higher risk of defects, Resilience LDI-backed projects in this segment are gaining a significant valuation boost.

- High-Density Housing: Buyers and investors in high-density developments are prioritising properties with LDI, pushing demand—and valuations—higher.

Lessons from International Markets

In the UK, LDI-backed developments not only sell faster but also face fewer legal disputes post-sale, which further bolsters buyer and investor confidence. Similarly, France’s mandatory decennial liability insurance for new builds has created a market where properties with coverage enjoy better resale performance and stronger demand.

These international experiences provide a roadmap for Australia’s emerging LDI market. As developers, financiers and buyers increasingly recognise the value of Resilience LDI, its adoption is expected to become a standard for high-quality developments.

The Future of LDI in Australia

As Resilience LDI becomes more prevalent, its benefits will continue to shape the property market. Developers who adopt Resilience LDI for their projects can expect:

- Faster Sales Cycles: Properties with Resilience LDI will move through the market more efficiently, reducing holding costs and enhancing profitability.

- Higher Valuations: The assurance of defect coverage will drive demand, pushing prices higher for both initial sales and resales.

- Stronger Buyer Loyalty: Buyers who experience the benefits of Resilience LDI-backed properties are likely to return for future projects by the same developer.

For buyers, Resilience LDI offers unparalleled peace of mind, while for developers, it provides a critical differentiator in an increasingly competitive market.

A Win-Win for All Stakeholders

Latent Defects Insurance is no longer just a safety net—it’s a value driver. For developers, it’s a way to build trust, ensure faster sales, and command higher prices. For buyers, it’s a guarantee of quality and protection against unforeseen costs. And for the Australian property market, it’s a step toward a more accountable and resilient future.

The message is clear: Resilience LDI-backed projects are the future of Australian real estate. Developers who embrace this shift will not only see immediate benefits in valuation and sales but also build lasting trust with buyers and investors.

The game-changing insurance not only protects properties but also enhances their marketability, helping builders, developers and homeowners unlock greater value

Resilience Latent Defects Insurance: A catalyst for higher property valuations and resale confidence

In the construction and property industries, insurance is vital to protecting stakeholders from financial risks. However, not all insurance policies are created equal, and the differences between them can sometimes lead to confusion.

<a href="https://www.urban.com.au/news/resilience-latent-defects-insurance">Resilience Latent Defects Insurance</a> (LDI) is one policy often misunderstood, particularly when compared to strata insurance, construction insurance, professional indemnity (PI) insurance, as well as many others.

A common misconception is that Resilience LDI offers duplicate coverage to other policies, particularly strata insurance. This misunderstanding can leave property owners, builders, and developers underprepared for the unique risks that only Resilience LDI addresses. In this article, we’ll explore how Resilience LDI differs from these other insurances, clarifying why it’s an essential safeguard for construction projects.

<h1>What is Resilience LDI?</h1>

Resilience LDI is a first-resort strict liability policy that covers physical loss or damage to new buildings caused by hidden structural and waterproofing defects. These defects, which may arise from flaws in design, materials, or workmanship, often become apparent years after construction is complete. LDI typically provides coverage for up to 10 years from the date of practical completion.

Unlike other types of insurance, Resilience LDI:

Covers defects: It doesn’t require a determination of fault, allowing for swift resolution 
Protects property owners directly: Coverage applies regardless of whether the original builder or developer is still operating. 
Focuses on structural elements: Its scope includes foundations, load-bearing walls, and waterproofing, among other critical components.

<h1>How Resilience LDI differs from other insurances</h1>

1. Strata Insurance 
 
Strata insurance is often mistakenly thought to provide the same coverage as Resilience LDI. However, the two serve entirely different purposes.

Strata Insurance: Protects common property in a strata scheme, such as roofs, lobbies and shared amenities, against risks like fire, flood and accidental damage. It does not cover structural waterproofing defects. 
 
Resilience LDI: Covers hidden defects in the building’s structure and waterproofing, ensuring that property owners are protected from significant repair costs years after construction. 
 
Key Difference: Strata insurance manages external risks and day-to-day maintenance, while Resilience LDI addresses hidden construction flaws.

2. Construction Insurance 
 
Construction insurance, also known as contract works insurance, protects against risks during the building phase. 
 
Construction Insurance: Covers damage to the site, materials, and equipment during construction due to events like theft, fire, or weather. It also protects against delays caused by these incidents.

Resilience LDI: Comes into effect after the project is complete, protecting against unforeseen structural and waterproofing issues. 
Key Difference: Construction insurance is limited to risks and patent defects discovered during the building phase, while Resilience LDI provides post-completion protection and coverage for latent defects.

3. Professional Indemnity (PI) Insurance 
 
PI insurance covers professionals, such as architects, engineers, and consultants, against claims of negligence or errors in their work. 
 
PI Insurance: Focuses on liability, compensating for financial losses caused by professional mistakes.

Resilience LDI: Addresses physical defects and their repair, without requiring proof of professional negligence. 
 
Key Difference: PI insurance is liability-based, while Resilience LDI is a no-fault policy ensuring immediate action on defects.

4. Liability Insurance

Liability insurance protects builders, developers, and contractors against claims for bodily injury or property damage caused during construction. 
 
Liability Insurance: Covers legal and compensation costs if someone is injured on-site or if the work causes damage to neighbouring properties. 
 
Resilience LDI: Covers structural and waterproofing issues that arise years later, with no need for a liability claim. 
Key Difference: Liability insurance handles claims during or immediately after construction; Resilience LDI focuses on the building’s structural longevity.

5. Landlord Insurance 
 
Landlord insurance covers risks associated with leasing a property.

Landlord Insurance: Protects landlords from tenant-related risks, including damage to the property, loss of rent, or liability claims from tenants.

Resilience LDI: Covers the structural integrity of the building, not tenancy-related issues. 
 
Key Difference: Landlord insurance is tenancy-focused, while Resilience LDI protects the physical structure itself as well as waterproofing failures.

<h2>Why LDI is not “doubling up”</h2>

Many property owners mistakenly believe that having strata or construction insurance means they don’t need Resilience LDI. This misconception can leave them exposed to significant financial risks.

Strata insurance does not cover defects: If a structural flaw in the building or waterproofing issue causes damage to common property, the cost of repair typically falls back on the owners’ corporation. Resilience LDI steps in to cover these costs. 
 
- Construction insurance is temporary: Once the project is complete, construction insurance no longer applies, leaving a gap in coverage that Resilience LDI fills. 
 
- No reliance on liability claims: Unlike PI or liability insurance, Resilience LDI ensures immediate repair coverage, avoiding delays caused by fault-finding or disputes.

<h2>Who benefits from Resilience LDI?</h2>

For property owners

Resilience LDI provides peace of mind, ensuring they are not burdened with repair or litigation costs for hidden defects years after buying their property.

For Builders and Developers

By including Resilience LDI in their projects, builders and developers can differentiate themselves in the market, demonstrating a commitment to quality and accountability. It also helps protect their balance sheets, offering financial security in the face of potential latent defect claims. Moreover, Resilience LDI-backed projects often experience improved sales velocity and command higher prices, providing a clear competitive edge.

For Financiers

Resilience LDI-backed projects are seen as lower-risk investments, enhancing their attractiveness to financiers.

For OC Managers

Resilience LDI ensures higher building quality through rigorous inspections, provides financial protection with a 10 year warranty for structural and waterproofing defects and simplifies defect resolution by allowing direct claims without the need to prove fault, enhancing the reputation and effectiveness of OC managers

The future of LDI in Australia

As construction standards and buyer expectations continue to rise, Resilience LDI is becoming a crucial part of the insurance landscape. Builders, developers, and property owners need to recognise its unique role in safeguarding against long-term risks. It is not a replacement for other insurances but a necessary addition that fills critical gaps in coverage.

The misconception that Resilience LDI overlaps with strata or other insurances must be dispelled. By understanding the distinct protections Resilience LDI offers, all stakeholders can make informed decisions to secure their investments and protect their reputations.

Resilience LDI isn’t just an option—it’s an essential safeguard for a secure future in construction and property ownership.

Not all construction and property insurances are created equal. Discover why Resilience LDI is a game-changer for builders, developers, property owners, financiers and OC managers - and how it goes beyond strata, construction, PI and landlord insurance.

How Resilience Latent Defects Insurance (LDI) stands apart from other construction and property insurances

The Charles de Gaulle Airport in Paris suffered a catastrophic collapse in 2004. The incident occurred when a section of steel roofing at Terminal 2E crashed down causing 4 people dead and injuries to several passengers. Investigation revealed that the reasons for the collapse were a combination of faulty design and workmanship. After four years of reconstruction, Terminal 2E reopened in March 2008, costing EUR 150 million (AUD 250 million) covered by insurers and reinsurers.

The Charles de Gaulle International Airport is one of the largest airports in the world. As a significant component of the expansion project in 1997, Terminal 2E started to be used in June 2003, with a cost of approximately 750 million euros. The 450-metre-long terminal building is an elliptical tube on parallel longitude beams constructed of 30-centimetre-thick reinforced concrete rings. However, just nine months after its operation, at 7 o’clock in the morning of 23 May 2004, a 30-meter section of glass of the roofing structure collapsed within the boarding area. The incident happened during the early morning hours and left 4 casualties, the consequences could have been more devastating if it occurred during rush hour.

The French Commission for the Administrative Investigation indicated that the structural engineering defects may have been a possible cause of the accident. These issues in structural design were associated with poorly placed reinforced steel, a lack of structure supports, weak outer steel structures and concrete support beams. The Chief architect of the project also released a statement mentioning that weak metal reinforcement in the concrete was the primary factor leading to partial collapse.

The collapse could also be attributed to failures in the construction process. Aéroports de Paris (ADP) was responsible for both designing and constructing this project. It was reported that there were hundreds of stakeholders involved in the work, which largely increased the management complexities. Meeting the project’s proposed timeline posed another challenge for ADP. Consequently, there may have been inadequate supervision of design reviews and site work inspections during the process, resulting in quality issues.

Following the demolition of the existing structure and the construction of a new light steel structure, the terminal reopened to the public in 2008. The estimated cost of the rebuilt project was 150 million euros (AUD 250 million). Since the airport owner had Decennial Liability Insurance (DLI), also known as Latent Defects Insurance (LDI), insurers and reinsurers were to guarantee the payout. DLI/LDI insurance is a mandatory program in France that provides cover against damage caused by defects in design, workmanship or materials affecting the structure, external walls and roofs. In this case, even though the cause of the collapse is unclear, LDI/DLI would still come into effect to facilitate repairs, as it is a strict liability policy.

The collapse of Charles de Gaulle Airport’s Terminal 2E in 2004 was a tragic event that exposed a combination of design and construction flaws. It prompted a re-evaluation of quality control in airport infrastructure projects and highlighted the importance of Latent Defects Insurance in addressing such structural defects-related incidents in the future.

Since the airport owner had Decennial Liability Insurance (DLI), also known as Latent Defects Insurance (LDI), insurers and reinsurers were to guarantee the payout.

When Latent Defect Insurance covered the $250m collapse of the Charles de Gaulle Airport

The word sterling has many connotations. It is often used when something is of top quality, prestige, and timelessness.

It is sterling that inspired the newest development in Lane Cove, in Sydney's booming Lower North Shore region.

Located in the quiet northern end of Lane Cove, <a href="/new-apartments/sterling-lane-cove-north-2-merinda-street-lane-cove-north-nsw-2066">Sterling</a>&nbsp;features 50 one, two, and three-bedroom apartments, catering for a wide variety of buyers and just six apartments per floor.

[smartcode_project:default project_id=136108 project_image_fid=303417]

Ray White Projects Wider Sydney Managing Director, Mark Bernberg, says everything about the project is intrinsically tied to what sterling is all about.

"Everything has been considered to be of sterling quality," Bernberg says.

"The fixtures and finishes are another level up from what has come before in this quiet pocket of Lane Cove, and every apartment, be it for the first home buyer, rightsizer, or downsizer, has the same sterling design approach."

[smartcode_project:default project_id=136108 project_image_fid=303415]

Each kitchen in Sterling is fitted with Miele ovens and cooktops and Fisher &amp; Paykel dishwashers.

Future residents will have access to a rooftop entertaining area with extensive panoramic views, over the leafy surroundings and back to the Sydney CBD.

The location of Sterling is expected to draw those seeking both nature and convenience. It is ideally located on Merinda Street, which will place residents between Stringybark Creek,&nbsp;Lane Cove's only area of endangered Blue Gum High Forest, and the well-connected&nbsp;Mowbray Road West and Epping Road.&nbsp;

It's only two kilometres from The Canopy, the heart of the Lane Cove community that has a plaza with extensive retail and hospitality venues centred around a village green-like lawn that regularly hosts live music acts.

[smartcode_project:default project_id=136108 project_image_fid=303412]

Sterling is being delivered by builder developer Scion Group, who has a strong reputation of delivering quality across Sydney's North Shore.

As part of its commitment to delivering quality, Scion has taken out the <a href="https://www.urban.com.au/news/what-is-latent-defects-insurance-and-is-it-bringing-confidence-to-the-off-the-plan-apartment-market">10-year Latent Defects Insurance</a> offered by Resilience Insurance. The insurance, often known as LDI covers structural defects of the building for up to 10 years post-completion. Sterling is the only development in Lane Cove to have the insurance.

Scion Group is well advanced in construction of Sterling. The building itself is expected to complete later this year, with the internal fitout seeing residents move in some time in Q1 2025.

[smartcode_project_cta:default project_id=136108]

Sterling in name and nature as new apartments hit Lane Cove

The power of Latent Defects Insurance isn't lost on anyone in the development industry.

Latent Defect Insurance, or LDI, is the new<a href="https://www.urban.com.au/news/what-is-latent-defects-insurance-and-is-it-bringing-confidence-to-the-off-the-plan-apartment-market"> groundbreaking insurance policy</a> 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.&nbsp;

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.&nbsp;

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.

&nbsp;

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.

[smartcode_project:default project_id=136442 project_image_fid=277072]

<a href="https://www.urban.com.au/new-apartments/marque-rockdale-602-608-princes-highway-rockdale">Marque Rockdale</a>&nbsp;will comprise just 58&nbsp;one, two, and three-bedroom apartments,&nbsp;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.

&nbsp;

[smartcode_project:default project_id=136442 project_image_fid=277073]

"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."

Read more:&nbsp;<a href="https://www.urban.com.au/expert-insights/building/the-advantages-of-first-resort-strict-liability-latent-defects-insurance-for-off-the-plan-property-buyers">The advantages of first resort, strict liability, Latent Defects Insurance for off the plan property buyers</a>

Marque is being built by iCIRT rated builder <a href="https://www.urban.com.au/builders/coplex">Coplex</a>&nbsp;who has already started construction. Marque Rockdale is slated for completion in mid-2025.

[smartcode_project:default project_id=136442 project_image_fid=277075]

&nbsp;

Speaking with <a href="https://www.urban.com.au/developers/princeton">Princeton</a> 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, <a href="https://www.urban.com.au/news/resilience-latent-defects-insurance">click here</a>.

[smartcode_project_cta:default project_id=136442]

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."

Princeton gives assurances to Marque Rockdale purchasers with 10-year Resilience Latent Defects Insurance

In the dynamic world of insurance, there is a product that has been quietly making waves across the globe for decades – Latent Defects Insurance (LDI).

Originating in Europe, this innovative insurance coverage has now found its way into the Australian market, promising a brighter future for the construction industry.&nbsp;

Latent Defects Insurance, also known as structural defects insurance or building warranty insurance, provides the most comprehensive protection to property owners, covering them against any hidden defects in construction projects. These defects may not be immediately apparent but could manifest months or even years after the completion of the project, leading to costly repairs and legal disputes.&nbsp;

Read more:&nbsp;<a href="https://www.urban.com.au/expert-insights/building/the-advantages-of-first-resort-strict-liability-latent-defects-insurance-for-off-the-plan-property-buyers">The advantages of first resort, strict liability, Latent Defects Insurance for off the plan property buyers</a>

The history of Latent Defects Insurance can be traced back to the mid-20th century when it was first introduced in Europe to address growing concerns surrounding construction defects. As the construction industry evolved and became more complex, the need for comprehensive, structural insurance coverage became increasingly apparent.&nbsp;

Over the years, Latent Defects Insurance gained popularity in countries like the United States, Canada, and the United Kingdom, where it became a standard requirement for large-scale construction projects. The insurance industry recognised the value of this product in mitigating risk and fostering a culture of accountability among construction stakeholders.

Now, Latent Defects Insurance is gaining traction in Australia, with nationwide availability transforming the construction landscape. This development marks a significant milestone for the Australian construction industry, offering newfound security and peace of mind to property owners, investors, developers, and builders alike.

Read more:&nbsp;<a href="https://industry.urban.com.au/updates/how-resilience-ldi-helps-off-the-plan-apartment-developers">How Resilience LDI helps off the plan apartment developers</a>

The introduction of Latent Defects Insurance in Australia is already having a transformative impact on the industry, promoting higher construction standards, reducing disputes, and enhancing overall project quality. With this innovative insurance coverage now widely accessible, the future of construction in Australia looks more promising than ever before.

The evolution of Latent Defects Insurance, from a niche product to a mainstream offering, is a testament to its effectiveness in addressing the complex challenges of the construction industry. As latent defects insurance continues to expand its reach, the future of construction worldwide, and especially in Australia, looks brighter and more secure than ever.

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The pioneering insurance firm, the only insurer who can offer Latent Defects Insurance in Australia, is Resilience Insurance.

Resilience Insurance CEO Corey Nugent says the insurance benefits both the purchaser and the developer.

“Ultimately what we’re trying to do is build better buildings the consumers can have trust in, but more importantly improve the post-completion and settlement process, so that when buyers take possession, they have full insurance protection, from day one, for 10 years” Nugent says.

“The insurance protects the buyer from any structural defects in the building, and developers who have taken Resilience LDI have reported an uptick in both sales volumes and sale values compared to competing developments that don’t have Resilience LDI.”

To find out more about Resilience Latent Defects Insurance, <a href="https://www.urban.com.au/news/resilience-latent-defects-insurance">click here</a>.

Latent Defects Insurance provides the most comprehensive protection to property owners, covering them against any hidden defects in construction projects

The evolution of Latent Defects Insurance worldwide and its nationwide availability in Australia

Having taken over the Central Coast Quarter, Gosford apartment development from St Hilliers, builder-developer&nbsp;Urban Property Group&nbsp;has released the final apartment of the first stage of the project.

<a href="https://www.urban.com.au/developers/urban-property-group">Urban Property Group</a>&nbsp;has recommenced construction of The Waterfront, a 25-level tower with 136 apartments. They've poured the concrete up to level 14, and are on track for completion in Q4 2025.

The final release of apartments offer a mix of two and three-bedroom configurations, as well as a handful four-bedroom apartments.

<img alt="The Waterfront at Central Coast Quarter" data-entity-type="file" data-entity-uuid="69a35482-c3b3-48b8-82f0-4e4aff844d5c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Waterfront_Living%20room_water%20views.jpg?VersionId=MuvFudeDBdrlIdbJQlA.YUerCI2XWdy9" />

One of the key measures to be implemented by UPG to safeguard buyer interests is the application of <a href="https://www.urban.com.au/news/resilience-latent-defects-insurance">10-year Latent Defects Insurance</a> (LDI), supplied through Resilience Insurance, offering additional protection against unforeseen construction defects for 10 years from the date of purchase.

Urban Property Group has retrospectively applied this significant consumer protection for all future and existing buyers of The Waterfront, where originally there was none, and is employing stringent quality assurance measures to ensure timely completion of the construction phases. This proactive approach underscores Urban's reputation as a trustworthy partner for consumers.&nbsp;

Read more:&nbsp;<a href="https://www.urban.com.au/news/what-is-latent-defects-insurance-and-is-it-bringing-confidence-to-the-off-the-plan-apartment-market">What is Latent Defects Insurance and is it bringing confidence to the off the plan apartment market?</a>

Urban Property Group Sales Director, Tom McIvor, says it is pleasing to see such enormous interest in the project on the Central Coast.

"The Waterfront represents the pinnacle of design and lifestyle, and Urban Property Group is proud to be delivering homes that offer contemporary coastal living," McIvor says,.

"Central Coast Quarter’s retail offering will further enhance this experience, providing residents with convenient access to an array of dining options at their doorstep. We are excited to create a vibrant new community in Gosford and &nbsp;The Waterfront offers buyers the opportunity to be among the first to join this new precinct.”&nbsp;

<img alt="The Waterfront at Central Coast Quarter balcony" data-entity-type="file" data-entity-uuid="81a870e0-9e76-4474-9f39-b2c7a099eabf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Waterfront_Balcony.jpg?VersionId=1TnlcyDh5jSwwUKOYvWMqm1TL3GGITIp" />

Designed by&nbsp;<a href="https://www.urban.com.au/architects/dko-architecture">DKO</a>, the majority of apartments at 26-30 Mann Street offer unobstructed views of Brisbane Waters, while there's also The Panorma Deck, an exclusive resident rooftop entertaining area.

<a href="https://www.urban.com.au/new-apartments/central-coast-quarter-32-mann-street-gosford">Central Coast Quarter</a> is a mixed-use precinct that will deliver around 334 apartments, 2,800 sqm of retail space, and a public domain, including a food and beverage precinct.

Urban Property Group <a href="https://www.urban.com.au/news/nsw/urban-property-group-acquires-central-coast-quarter-from-st-hilliers">took over the site</a> from the collapsed developer St Hillers earlier this year.

Central Coast Quarter is a mixed-use precinct that will deliver around 334 apartments, 2,800 sqm of retail space, and a public domain, including a food and beverage precinct

Urban Property Group take out Latent Defects Insurance at Central Coast Quarter apartment precinct

Harvey Norman billionaire Gerry Harvey has recognised the importance of giving new apartment buyers in his Dubbo apartment development as much confidence to invest in a type of property the local area won't be overly familiar with.

Harvey is working on Dubbo's first high-rise, off the plan apartment development in partnership with the local Walkom brothers.

The joint venture partners have taken out Resilience Latent Defects Insurance (LDI), the new policy that protects off the plan apartment buyers from any structural defects of the building for 10 years post-completion.

Some of Sydney’s biggest and most respected developers have embraced the new insurance. The likes of&nbsp;<a href="https://www.urban.com.au/developers/deicorp" target="">Deicorp</a>,&nbsp;<a href="/developers/kanebridge">Kanebridge</a>, <a href="https://www.urban.com.au/developers/princeton">Princeton</a>,&nbsp;<a href="https://www.urban.com.au/developers/abadeen-group">Abadeen</a>,&nbsp;<a href="https://www.urban.com.au/news/coronation-property-launches-its-first-release-in-merrylands-development-mason-main" target="">Coronation Property</a>&nbsp;and&nbsp;<a href="https://www.urban.com.au/developers/urban-property-group" target="">Urban Property Group</a>&nbsp;have rolled out the insurance across some, if not all of the projects they’re currently undertaking.&nbsp;

Read more: <a href="https://www.urban.com.au/news/what-is-latent-defects-insurance-and-is-it-bringing-confidence-to-the-off-the-plan-apartment-market?utm_source=Iterable&amp;utm_medium=email&amp;utm_campaign=database_email_mu_20240819_city_nsw&amp;csl=32fbd0cb70aa80ff738af0b1706c4fde0636d15a&amp;iterableEndUserId=32fbd0cb70aa80ff738af0b1706c4fde0636d15a&amp;iterableEmailCampaignId=10796201">What is Latent Defects Insurance and is it bringing confidence to the off the plan apartment market?</a>

The new $35 million development, currently under construction and slated for completion in late 2025, will be the tallest building in Dubbo by some way at 15 levels.

<img alt="1 Church Street Dubbo LDI podium" data-entity-type="file" data-entity-uuid="820941d6-8931-464d-bcef-56497ff0e822" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/1%20Church%20Street%20podium.png?VersionId=wDJnm6gW8JsipKaR4tBfqrWdhPjJbh1p" />

The project, which comprises 80 apartments, the majority of which are two-bedrooms, is already 70 per cent sold. The remaining apartments are scheduled for release next year.

The apartments, which feature views of the Macquarie River and the surrounding bushland from the upper-level balconies, will sit above commercial and retail spaces and parking for over 100 cars.

<img alt="1 Church Street Dubbo LDI apartments" data-entity-type="file" data-entity-uuid="0e2e620d-b29e-4b1d-97d0-6d4a3291919a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/1%20Church%20Street%20apartments.png?VersionId=f0srGMsqhmlVZ2rFNpk73ZsNNqb4wQyT" />

<h2>What is Resilience LDI?</h2>

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, <a href="https://www.urban.com.au/news/what-is-latent-defects-insurance-and-is-it-bringing-confidence-to-the-off-the-plan-apartment-market">click here</a>.

The new $35 million development, currently under construction and slated for completion in late 2025, will be the tallest building in Dubbo by some way at 15 levels

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