In a nationwide first NSW has introduced a 10-year liability insurance scheme which enables owners’ corporations to have serious defects fixed up to 10 years post original occupation of the dwelling.

The purpose of the new policy is to aid potential apartment buyers throughout the purchasing process along with the provision of stability and security. This policy is also aiming to be a key driver towards higher quality developments across the state.

To put it simply, developers will be able to purchase a policy that will cover major defects for 10 years without having to cover the entire premium upfront. After the duration the policy is then transferred to the Strata committee for the benefit of the purchasers. Upon the detection of any serious defects a claim will then be lodged by Strata against the insurer for assessment.

This new policy will save purchasers the rigmarole of gruelling and expensive litigation against developers and secures them compensation in the case of developers folding their business post construction.