NSW is the first jurisdiction in Australia to introduce a new insurance product that offers 10 year protection for buyers of residential apartments.
This is a huge win for apartment owners and body corporates.
Decennial liability gives power to purchasers and body corporates, who will no longer need to prove liability and will only have to demonstrate the damage for assessment.
Under this insurance scheme, developers and builders would take out a policy to cover any potential costs by an owner to fix serious defects of critical building elements for up to 10 years.
Insurance will cover critical parts of the building’s common property, structure, fire safety systems and waterproofing.
NSW leads the way with this insurance type for class 2 buildings.
