The sought-after Latent Defects Insurance policy, offering off the plan apartment buyers peace of mind for 10 years post-completion, has made its way to Sydney’s harbourside. Boutique developer <a href="https://www.apartments.com.au/developers/toohey-miller">Toohey Miller</a> has secured this insurance for its newly launched Elizabeth Bay development, <a href="https://www.apartments.com.au/new-apartments/barncleuth-square-elizabeth-bay-4-4a-barncleuth-square-elizabeth-bay-nsw-2011">Barncleuth</a>. This marks the developer’s second project in the area, following the success of No. 1 Onslow Place.

Latent Defects Insurance, offered by <a href="https://www.apartments.com.au/news/resilience-latent-defects-insurance">Resilience Insurance</a>, provides cover for structural or waterproofing defects in new apartment buildings. It is a policy that only the developer or builder can take out, not the apartment purchaser.

Located just&nbsp;off Macleay Street, one of Sydney’s most desirable high streets, Barncleuth offers a rare collection of only 10 residences. With just two per floor, each oversized floorplan has been designed by SJB specifically for the owner-occupier.

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The five-storey building captures views over Rushcutters Bay and Paddington, blending contemporary brickwork with the expressive silhouettes of its Art Deco neighbours.

Inside, the residences, designed by David Hicks, prioritise generous scale and enduring quality, with a mix of two- and three-bedroom layouts. Expansive terraces and cross-ventilated interiors maximise light and airflow, while sustainable features such as a green roof and locally sourced materials reflect SJB’s commitment to long-term liveability.

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Developer Toohey Miller, led by Nick Couloumbis, says the design aims to bring lasting quality to an area long celebrated for its apartment heritage.

"It's a stone's throw from the best restaurants in Sydney. Some people call it the Soho of Sydney," Couloumbis told Apartments.com.au when the project was approved.

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By securing <a href="https://www.apartments.com.au/news/resilience-latent-defects-insurance">Resilience Latent Defects Insurance</a>, Barncleuth joins a growing group of premium Sydney projects adopting the gold standard in building protection.&nbsp;

The cover, provided before construction begins, ensures any hidden structural or waterproofing defects are repaired immediately, without lengthy litigation or fault disputes.

Resilience Insurance CEO Corey Nugent said the product has been a catalyst for renewed confidence in the off the plan market.&nbsp;

“Ultimately what we’re trying to do is build better buildings consumers can trust. When buyers take possession, they have full insurance protection from day one, for 10 years,” Nugent explained.

Unlike traditional policies such as strata or construction insurance, Resilience LDI is a first-resort, strict liability policy, meaning repairs are covered immediately without needing to prove negligence. Coverage extends to foundations, load-bearing walls, and waterproofing, the elements most critical to long-term structural integrity.

Regarded construction firm Jasara has been appointed to deliver Barncleuth. They are forecasting an early 2027 completion.

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Joel Robinson

Toohey Miller brings 10-year Latent Defects Insurance to Elizabeth Bay as Barncleuth apartments launch

Latent Defects Insurance (LDI) is rapidly becoming a must-have in the New South Wales new development market, with more developers than ever adopting the rigorous insurance policy that brings confidence to the market like no other.

While LDI has been long established in Europe and the Americas, it only entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover. It arrived against a backdrop of high-profile defects cases that had dented confidence in the apartment sector.

Latent Defects Insurance is secured by the developer and protects the building—and, more importantly, the apartments within it, from any structural or waterproofing defects that may arise within the first 10 years of the building's completion.

Resilience Insurance CEO Corey Nugent says developers have quickly realised its importance.

“The overarching feedback from prospective buyers in the new development space is that they have an inherent lack of confidence,” Nugent says. “That has been the number one factor in buyers transacting. Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product by taking out the insurance.”

Nugent says there has been a marked uptick in new projects with LDI in the last 12 months.

“There are now over 3,200 apartments in the pipeline that have, or will have, the Latent Defects Insurance policy. Developers understand the value it gives to buyers while also recognising that if they don’t offer it, others will—and that makes a competing development much more appealing to a buyer.”

Nugent says we are now seeing a real shift in the culture of development. The policy doesn’t just protect purchasers; it encourages better standards during construction because independent inspections are part of the process. “That’s the real long-term benefit.”

Builder-developers have been particularly active in driving adoption of the policy. Deicorp was among the earliest adopters, setting a precedent that many others have followed. Builder-developer DASCO has taken out LDI across its two new projects, Danks Street District in Waterloo and Senso in Epping.

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Fellow prolific builder-developer ALAND has taken out its first Latent Defects Insurance policy at The Walden, the newest apartment development in North Sydney. ALAND Founder Andrew Hrsto said offering the policy was a natural decision.

“We will be the first project in North Sydney to offer our purchasers the certainty this level of insurance brings,” Hrsto says.

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Newcastle builder-developer GWH has just taken out the policy at its newest development, ERA, one of the only new developments in the region with Latent Defects Insurance.

GWH Director Jonathan Craig said the policy is a “win for everyone.” “As a builder and developer, we take great pride in our work. Having third-party inspections throughout construction gives us confidence and delivers peace of mind for the buyer.”

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Longstanding, diversified developer Northland Group is offering the only LDI-insured apartments in Merrylands in Sydney’s growing west. Their under-construction Pitt Street development, Central Quarter, will comprise 194 apartments above a full new commercial and retail precinct.

Chris Williams, Operations Director at Home789, who is selling Central Quarter in conjunction with Stone Projects, says buyers are seeing LDI as both a value-add and protection.

“LDI is helping first home buyers and investors feel more confident, especially with all the negative publicity around off-the-plan apartments,” Williams says. He adds that buyers also appreciate the strict requirements and scheduled inspections throughout construction. “That adds another layer of credibility to the project and gives them extra confidence in the build quality.”

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Developments with LDI are subject to the Technical Inspection Service program, an independent third-party review process that monitors and evaluates a building’s design and construction. By integrating regular inspections and detailed assessments into every stage of construction, the TIS significantly reduces the likelihood of latent structural defects—issues that only become apparent after project completion.

Resilience Insurance is working with the NSW Government and expects Latent Defects Insurance to be mandatory by 2028.

“There are now over 3,200 apartments in the pipeline that have, or will have, the Latent Defects Insurance policy."

Resilience Latent Defect Insurance protection runs hot in New South Wales

Developers&nbsp;<a href="https://www.apartments.com.au/developers/equicentia">Equicentia</a>&nbsp;and Wingala Capital, have become the first in Manly to secure Resilience Insurance’s Latent Defects Insurance.

The duo has recently launched <a href="https://www.apartments.com.au/new-apartments/de-ville-manly-11-victoria-parade-manly-nsw-2095">De Ville</a>, an ode to the remnant heritage building that will be integrated into the final development. The&nbsp;new luxury project will be delivered on a long-dormant yet prime site at 9–11 Victoria Parade, positioned between East Esplanade and South Steyne.

<img alt="De Ville" data-entity-type="file" data-entity-uuid="b2639bb1-d72c-4f28-b4dc-33190655e147" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-10-12%20at%209.38.37%E2%80%AFAM.png?VersionId=orUAk2m2tTKAAasLvZg0IaGQyDaZcKYI" />

The site was originally earmarked for a 13-apartment scheme, but following its $23.5 million acquisition of the near-600 sqm parcel, the development team opted for a more refined approach, reducing the yield to just 12 two- and three-bedroom residences across a seven-level building.

Among them will be three full-floor penthouses boasting panoramic views across Manly Beach, North Harbour, and the city skyline. The apartments will sit above four ground-floor retail and commercial tenancies, designed to help activate Victoria Parade, an area long defined by its beachside character and interwar brick architecture.

<img alt="De Ville" data-entity-type="file" data-entity-uuid="d6922f4a-21fb-4a07-8e40-241d594c2538" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/int3.jpg?VersionId=7U1Qw79_YT3bOZKr7.H03JHOFm3QVYlE" />

Designed by <a href="https://www.apartments.com.au/architects/platform-architects">Platform Architects</a>, De Ville’s sculpted form takes cues from the ebb and flow of Manly’s dual waterfronts, the ocean to one side and the harbour to the other.&nbsp;

The architecture’s soft curvature and rhythmic vertical brickwork reflect the natural patterns of the tide, while a refined palette of Lohas brick, sandy render and glass detailing allows the building to harmonise with its coastal context.&nbsp; Cascading greenery and deep balconies bring texture and shadow to the facade, reinforcing the building’s connection to nature and the street.

Buyers have a choice of two different colour palettes, Taj Mahal and Brescia Green, each layering soft tones and organic finishes to capture the coastal light.

<img alt="De Ville" data-entity-type="file" data-entity-uuid="be78b114-88ed-4d33-a4ef-50e14d2f9064" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/int6a.jpg?VersionId=hBrZPvs1L2LwThSatcNMXTg0tltfEn4a" />

The development marks another significant milestone for the partnership between Ashwin Arumugam, Managing Director of Equicentia, and Christopher Howard, Managing Director of Wingala Capital, both former colleagues at Poly Developments &amp; Holdings, where they jointly led acquisitions and capital markets for one of China’s largest developers.

“As a Northern Beaches local for the past decade — and with my wife having lived here her whole life — it’s a genuine privilege to contribute to a community we deeply care about,"&nbsp;Howard says.

"This site has sat dormant for many years, and we’re proud to play a part in reactivating it in a way that respects and enhances the unique beauty of Manly."

Equicentia and Wingala have partnered with Monark Property Partners to deliver De Ville.

Tom Nadav, Director of Investments at Monark, said partnering with Equicentia &amp; Wingala Capital represents an exciting step in Monark’s east coast expansion strategy.

"Manly is a unique market, and collaborating with developers of this calibre underscores our focus on backing high-quality people with a clear vision. By leveraging the strength of strategic partnerships, Monark is providing the capital that enables outstanding projects like this to move from concept to reality.”

<img alt="Equicentia" data-entity-type="file" data-entity-uuid="6b6d253d-372d-4204-86d6-37cb8d56f7e4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-10-15%20at%207.27.18%E2%80%AFAM.png?VersionId=vzGFgOKEGLRuT_RulWT0N1YS6qDNKj8S" />

De Ville is the first development in Manly to fully protect its buyers with 10-year Latent Defects Insurance offered by Resilience Insurance.

The policy covers buyers for 10-years post-completion of the building, a first-resort cover again&nbsp;major structural or waterproofing defects.&nbsp;

Unlike traditional statutory warranties, which often require complex and lengthy claims processes, LDI ensures that if a covered defect arises, the insurer responds immediately - without the need to prove fault or pursue the builder or developer.

This new model of protection has been gaining traction among forward-thinking developers and financiers alike. For buyers, it offers tangible assurance of quality and accountability; for lenders and insurers, it reflects a measurable reduction in long-term risk.

Read more:&nbsp;<a href="https://www.apartments.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>

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Equicentia and Wingala bring Manly its first apartment development with 10-year Latent Defects Insurance

Sun Property Group (SPG) has taken a major step to reinforce its commitment to consumer trust by securing Latent Defects Insurance (LDI) from Resilience Insurance for its nearly completed Willoughby development on Sydney’s Lower North Shore.

The boutique project, Aurora, comprising 12 apartments and a ground-floor commercial space, is one of few in the region to adopt the forward-thinking insurance model—offering a point of difference in a competitive market.

For Cameron Johnson, General Manager at Sun Property Group, the decision to adopt LDI was rooted in the company’s long-standing philosophy of maintaining a highly personalised relationship with its end users.

“We’ve always taken ownership over our product,” Johnson said. “Introducing LDI is not just about peace of mind for the buyer—it’s about raising the internal bar. It becomes the baseline for how we do things going forward.”

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While hundreds of developers and builders have taken out an LDI policy from Resilience Insurance, the insurance is still relatively new to Australia. Johnson says he sees significant future potential with LDI nationwide, with both&nbsp;regulatory and market frameworks starting to evolve to support its wider use in class two buildings.

“When we started the Willoughby project, LDI was still just a concept being floated by the Building Commissioner’s office," Johnson says.

"Delays in the construction timeline gave us the unique opportunity to adopt it as the product became more available in late 2023."

That timing aligned with a shift in construction contractors on the project, which opened the door for a more collaborative and considered implementation of the insurance. According to Johnson, Resilience Insurance was proactive and solution-oriented.

“It wasn’t just about us buying a product off the shelf. It was a dialogue—how can we work together to deliver something that meets both of our needs?” he added.

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LDI covers major structural defects for up to 10 years post-completion and offers an alternative to the traditional developer bond held under the Department of Fair Trading’s scheme. SPG prudently factor in a two per cent cost profile for such measures into its feasibility, treating it as “business as usual.”

“What LDI does is show the consumer that we’re front-ending our responsibilities—design, delivery, documentation, execution. That whole chain of custody is assessed and independently reviewed throughout construction. It’s a rubber stamp on quality,” Johnson said.

In a region where no other nearby developments currently carry LDI, the move also creates a market differentiator. While some projects may carry an iCIRT rating, few offer the depth of protection and oversight that LDI provides, especially outside of publicly listed organisations.

Aurora is being brought to market by Henry Burke of McGrath Projects. With the recent cut in interest rates Burke expects that many first home buyers and investors will jump at the chance to buy in Aurora due to its convenient location, fantastic retail amenity, picturesque parks with leafy walks, and excellent transport connections with only one stop to Sydney CBD. He expects a local owner-occupier to secure the standout penthouse which offers 175 sqm of internal space and further 200 sqm of outdoor space.

[smartcode_project:default project_id=109919 project_image_fid=205010]

Johnson says Aurora residents will not only benefit from the first right insurance policy, which means action is taken immediately rather than often long and complicated battles as developers and builders point fingers at each other as to who created the issue, but from how it can benefit the strata communities of the building.

Many buyers, especially first-time apartment owners, have limited understanding of shared infrastructure or the responsibilities of Owners Corporations. LDI adds an important layer of education, structure, and protection.

“People want to move in and enjoy what they’ve bought. But when things go wrong, that’s when emotions and stress levels rise. The insurance policy gives owners a clearer path to resolution—an assured, regulated compensation process. It also helps equip owners and managers with the knowledge they need to maintain the building properly.”

The insurance includes tools such as service penetration matrices and access documentation—going far beyond standard build drawings. Johnson says it’s about delivering not just a home, but a sustainable, manageable asset.

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Sun Property Group continues to build on its strong track record across Sydney’s Lower North Shore, with an upcoming major development of its Bowen Street, Chatswood landholdings and additional projects underway in Melbourne. The team recently completed its debut Melbourne apartment project, The Brookville in Toorak, showcasing their commitment to delivering high-quality, design-led communities.

In a region where no other nearby developments currently carry LDI, the move also creates a market differentiator

Sun Property Group approaches completion of Willoughby's first apartment development with 10-year Latent Defects Insurance

Autobiography is the latest builder-developer to take out the sought-after 10-year Latent Defects Insurance policy from Resilience Insurance.

Autobiography has locked in the new insurance, that covers off the plan apartment buyers for any structural or waterproofing defects in a building for 10 years post-completion of the development, in their newest apartment project in Wickham, on the fringe of Newcastle.

The development, Autobiography at Wickham, will bring 150 one-, two-, and three-bedroom apartments to Railway Lane, a stone's throw from the Newcastle Interchange and the Honeysuckle Drive retail and dining precinct.

It is one of just two multi-residential developments on the market in the Newcastle region to have the Latent Defects Insurance policy, the other being Third.i's Dairy Farmers projects.

Unlike traditional warranties, LDI covers apartment owners from day one, protecting against structural defects including cracks, water ingress, and other latent construction issues that may arise over the life of the building.&nbsp;

The policy is taken out by the developer prior to construction and applies across the entire building and its individual units. This ensures owners have direct recourse without needing to initiate costly or lengthy litigation processes.

“When buyers take possession, they have full insurance protection, from day one, for 10 years,” said Resilience Insurance CEO Corey Nugent.

&nbsp;

<img alt="Autobiography @ Wickham" data-entity-type="file" data-entity-uuid="1f1d77f5-7c8a-47ff-af60-a882f6e1bddf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/67eac37caf8a09978ce70a3a_URBANA%20PLAN%2073-79%20RAILWAY%20LANE%20WICKHAM_HERO%202.jpg?VersionId=Jvam7sJ4VDGHH1A4pK9NRo8REKrLgkrI" />

Designed by Urbanacorp in collaboration with architect <a href="https://www.apartments.com.au/architects/nick-lycenko-architect">Nicholas Lycenko</a> and <a href="https://www.apartments.com.au/landscape-architect/paul-scrivener">Paul Scrivener Landscape Design</a>, Autobiography at Wickham is purpose-built for the inner-city lifestyle.

It will feature a suite of&nbsp;resident-only amenities, including a fully equipped gym, yoga and Pilates studio, wellness centre, in-ground swimming pool, landscaped BBQ areas, a children’s playground, and a series of communal indoor-outdoor spaces. Practical additions such as EV charging stations and extra car parking options further reflect the project’s future-oriented approach.

<img alt="Autobiography @ Wickham" data-entity-type="file" data-entity-uuid="8f77a069-3f9a-4665-8a3a-e84ce7fe9d48" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/67eac36c08e716d1bbd0be5e_URBANA%20PLAN%2073-79%20RAILWAY%20LANE%20WICKHAM_HERO%201.jpg?VersionId=fZLLVPmOmounYhHL9ZSeDfRo4UKvTit8" />

Autobiography Wickham is one of several projects currently being undertaken by the developer.

They have Autobiography at The Belrose Collection, and Autobiography at Broadmeadow. In 2022 they completed Autobiography at Adamstown, 40 apartments above four commercial spaces.

Autobiography makes confident Wickham debut with 10-year LDI-backed apartments

The Victorian Government has passed legislation creating a developer-paid Strata Building Bond establishing much needed first level consumer protections for purchasers of new apartments in the state.&nbsp;

Aligned to that legislation the government is progressing new regulation to allow developers to insure those new apartment projects with a 10-year Latent Defects Insurance (LDI) policy, <a href="https://www.apartments.com.au/news/resilience-latent-defects-insurance">Resilience LDI</a>, instead of the traditional Strata Building Bond.

The move is part of a broader strategy to stimulate both supply and demand in the new apartment market. Recent government initiatives include removing stamp duty on new apartments until October 2026 and encouraging increased housing density around 50 key train and tram corridors.

This latest insurance reform is expected to boost buyer confidence in a market that has seen sluggish demand in recent years.

Read more: <a href="https://www.apartments.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>

Resilience Insurance was the first provider to offer Latent Defects Insurance in Australia, with Sydney developers such as Deicorp, Urban Property Group, and <a href="https://www.urban.com.au/developers/northland-group">Northland Group</a> already taking up the policy.

Corey Nugent, CEO of Resilience Insurance, says the new legislation is a significant step toward rebuilding trust in Victoria’s off the plan property market.

“We work in an industry where buyers are cautious about purchasing off the plan,” Nugent says. “As a country, we need people to feel confident in that buying process. Having a Resilience LDI on a building gives those buyers absolute peace of mind when transacting.”

Nugent says as construction standards and buyer expectations continue to rise, Resilience LDI is becoming a crucial part of the insurance landscape.&nbsp;

“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.”

Read more:&nbsp;<a href="https://www.apartments.com.au/expert-insights/strata-insurance-vs-latent-defects-insurance-closing-the-coverage-gaps-for-property-stakeholders">Strata Insurance vs Latent Defects Insurance: Closing the coverage gaps for property stakeholders</a>

Resilience has been working closely with the Victorian Government over the past 12 months to help establish a workable framework for the policy’s adoption.

Victoria’s Strata Building Bond scheme, which operates similarly to the same program in NSW, introduced in 2017, requires developers of apartment buildings with four or more storeys to provide a bond equal to two per cent of the total contract price. This bond, held by the Building and Plumbing Commission, is intended to cover the cost of fixing defects found in common areas within a set timeframe after completion.

However, one of the key criticisms of the bond scheme is that it only covers common property—not private areas or structural defects. It also doesn’t address issues related to faulty materials, design, or workmanship.

Latent Defects Insurance, typically costing between 1 and 1.5 per cent of a development’s total build cost, offers far broader protection. As a “first right” policy, it serves as the primary source of financial coverage in the event of structural issues. LDI covers the cost of repairing or replacing components damaged due to defects in design, materials, or workmanship, with a 10-year coverage period beginning from the date of the Occupancy Certificate.

The New South Wales Government has also thrown its support behind Latent Defects Insurance and is expected to announce it will become mandatory in 2028.

Resilience has been working closely with the Victorian Government over the past 12 months to help establish a workable framework for the policy’s adoption.

VIC Government introduces Latent Defects Insurance as alternative to Strata Building Bond

Longstanding Sydney developer <a href="/developers/northland">Northland Group</a> has delivered two of the most confidence-boosting signals in the off-the-plan property market: launching their new development well after construction is underway, and securing Resilience Insurance’s 10-year Latent Defects Insurance.

Their latest project, Central Quarter in Merrylands, is already well on track to deliver 194 one-, two-, and three-bedroom apartments, along with a retail and commercial podium, by early to mid-2026.

A major bonus for buyers is that Northland is both the developer and builder, meaning they’re responsible for the full delivery and quality control of the project.

Apartments start from just under $600,000, with two-bedrooms priced from under $750,000 — making them particularly popular with first home buyers who benefit from no stamp duty under the NSW Government’s $800,000 threshold.

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Each residence features modern finishes, including laminate timber flooring, plush carpeting, and zoned air conditioning in all bedrooms and living areas. Open-plan living and dining areas extend to tiled balconies, maximising natural light and seamless indoor-outdoor living.

Kitchens are equipped with premium Smeg appliances and Villeroy &amp; Boch tapware, while bathrooms offer fully tiled finishes, polished chrome fittings, and soft-close cabinetry.

[smartcode_project:default project_id=5660 project_image_fid=1607]

Northland Head of Property, John Soliman, says when the opportunity arose to purchase the Pitt Street site, it was the prime location that drove the acquisition.

"Central Quarter is one of the most connected developments in Merrylands&nbsp;— and potentially in all of Western Sydney," Soliman said.

"The building sits directly next to Merrylands Station (just 35 minutes by train to the CBD), the Merrylands bus interchange, and across the road from Stockland Merrylands, home to nearly 200 retailers. It offers everything a modern day buyer would want at their fingertips."

Northland is also bringing new amenity to the base of the building, securing major fast food operators, a 24/7 gym, a childcare centre, and other local service providers to further activate the precinct.

[smartcode_project:default project_id=5660 project_image_fid=1616]

The biggest advantage for buyers at Central Quarter is the inclusion of Resilience Insurance’s 10-year Latent Defects Insurance — a major shift in buyer protection and industry transparency.

This structural warranty protects purchasers against significant issues related to structural elements and waterproofing.

Unlike traditional strata bonds, Latent Defects Insurance is purchased by the developer, activated at completion, and includes independent inspections throughout the build — helping to identify and rectify problems before handover.

[smartcode_project_cta:default project_id=5660]

Apartments start from just under $600,000, with two-bedrooms priced from under $750,000

Northland launches Central Quarter, Merrylands' first new apartment development with Resilience 10-year Latent Defects Insurance

Confidence is currency in the off the plan apartment market.

A developer’s track record is paramount. If they’re new to the scene, their personal background and the calibre of their partners—architects, builders, planners—can offer strong indications of the project's likely success.

Now, a new layer of buyer assurance is emerging: Latent Defects Insurance (LDI).

INCA Property Group is among the latest developers to adopt this rigorous form of protection, securing LDI through Resilience Insurance for its boutique St Ives development, Ellis Residences.

Currently under construction by GOP Constructions, Ellis Residences will comprise 18 three-bedroom apartments, nestled in a quiet cul-de-sac just moments from St Ives Village.

[smartcode_project:default project_id=144449 project_image_fid=316794]

INCA Development Manager Michael Downs says the team first encountered LDI during their Waitara project but couldn’t proceed at the time, as construction was already too far advanced.

"By the time we were planning Ellis, our builder was proactively asking for it," Downs says. "It gives them certainty, it gives us confidence—and ultimately, it protects the buyer in a way that traditional strata bonds can’t. By the time it’s complete, we know any structural concerns for the next 10 years are covered. It’s a cleaner, more accountable way to do things—the builder can move on, and the buyer isn’t left chasing defects years down the track."

INCA’s Sales and Marketing Manager Mat Cassidy says that while LDI may not be widely understood by buyers just yet, it’s a game changer once explained.

"When we invited our local agent network to preview Ellis before launching sales, the key topic of conversation was how to explain Latent Defects Insurance to buyers," Cassidy says. "We had the Resilience Insurance team on hand to answer questions and break it down. Once it was explained, the value really hit home."

Cassidy describes LDI as "a new benchmark for buyer protection", and says its impact goes beyond post-settlement peace of mind.

"There are monthly or even bi-monthly inspections by a third-party Technical Inspection Service. What the builder delivers isn’t just acceptable to the developer—it has to meet the insurer’s standards. That level of scrutiny benefits everyone."

Even in the event that something does arise post-completion, Cassidy says the process is refreshingly simple for buyers.

"If something goes wrong within the first 10 years, buyers aren’t left fighting for a resolution. They just call the insurer. That’s what we love—peace of mind for everyone involved."

Ellis Residences is currently one of the only developments in the Ku-ring-gai local government area to offer Latent Defects Insurance.

Cassidy confirms INCA plans to roll out LDI across all future apartment projects.

"It’s a must for us—we’re committed to doing the right thing by our buyers," he says. "Without buyers, there are no new projects, so their needs and expectations come above all else."

<hr data-end="3209" data-start="3206" />
<h3 data-end="3252" data-start="3211">What is Latent Defects Insurance?</h3>

Latent Defects Insurance is a 10-year structural warranty that protects apartment buyers from major defects in structural elements, waterproofing, and core building systems such as electrical and plumbing.

It differs from traditional strata bonds in that it’s developer-purchased and activated immediately upon completion. It also includes independent inspections throughout construction to help catch issues early.

Read more:&nbsp;<a href="/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>

Ellis Residences is currently one of the only developments in the Ku-ring-gai local government area to offer Latent Defects Insurance

"A new benchmark for buyer protection" INCA takes out Resilience LDI at Ellis Residences, St Ives

Buyers are preparing to move into their new homes in <a href="/developments/lane-cove-north-nsw-2066">Lane Cove North</a>, with construction now complete on Sterling, the latest development by builder-developer Scion Group.

The five-level project, located at 2 Merinda Street, comprises just 50 one, two, and three-bedroom apartments to an area starved of new apartments.

Designed by <a href="/architects/design-corp-architects">Design Corp Architects</a>, Sterling’s architecture draws on Lane Cove’s natural surroundings, with a neutral palette, generous balconies, and integrated landscaping.

[smartcode_project:default project_id=136108 project_image_fid=303417]

The family-run Scion took over the build that had already commenced construction, the first time the company had done so since it was founded by Sam Jabbour in the early 1990s.

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 <a href="/expert-insights/latent-defects-insurance-101-what-is-the-technical-inspection-service-tis-program">Technical Inspection Service</a> 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.”

&nbsp;

[smartcode_project:default project_id=136108 project_image_fid=303415]

<a href="/news/resilience-latent-defects-insurance">Latent Defects Insurance</a>, an insurance only offered in Australia by Resilience Insurance and taken out on the building rather than by each individual owner, protects apartment buyers from any structural,&nbsp;

LDI offers 10 years of protection against structural or design defects post-completion, providing a level of assurance that is proving to be a game-changer in the off the plan apartment market.

[smartcode_project:default project_id=136108 project_image_fid=303420]

Ray White Projects Western Sydney Managing Director Mark Bernberg, who is handling the sales, says there have been purchasers who are buying because the development has LDI.

"LDI is a true game-changer for the new and off the plan apartment market," Bernberg says.

<a href="/buildings/sterling-lane-cove-north-2-merinda-street-lane-cove-north-nsw-2066">Sterling</a> has attracted a diverse mix of buyers, including first homebuyers, downsizers, and investors drawn to the area’s lifestyle offering and connectivity.&nbsp;

There are just a handful of apartments remaining in Sterling.

[smartcode_project_cta:default project_id=136108]

Sterling has attracted a diverse mix of buyers, including first homebuyers, downsizers, and investors drawn to the area’s lifestyle offering and connectivity. 



Buyers to move into Lane Cove North's first LDI-protected apartment development as Scion wraps up Sterling construction

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 <a href="/developers/deicorp">Deicorp</a>, <a href="/developers/dasco">DASCO</a>, and <a href="/developers/urban-property-group">Urban Property Group</a> 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 Resilience Insurance—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>

<a href="/news/resilience-latent-defects-insurance">Latent Defects Insurance</a> is a crucial component for the future of Australia’s built environment. Also known as Decennial Liability Insurance, LDI has been part of the <a href="/expert-insights/buying/the-evolution-of-latent-defects-insurance-worldwide-and-its-nationwide-availability-in-australia">new development landscape in Europe and other regions</a> 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 rollout in Australia, 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>In a nutshell, how exactly does Latent Defects Insurance work?</h2>

While Latent Defects Insurance (LDI) involves several components, the overall process is quite straightforward once the policy is in place.

The LDI process begins even before construction starts. As part of the policy, a <a href="/expert-insights/latent-defects-insurance-101-what-is-the-technical-inspection-service-tis-program">Technical Inspection Service</a> (TIS) assesses the site before work begins. Throughout the construction phase, the TIS regularly visits the site to ensure everything is progressing as planned. If any issues are found, the TIS provides a detailed report outlining the necessary corrections. By having the TIS involved from the outset, the risk of structural defects in the finished building is significantly reduced, addressing potential problems before they arise.

<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 <a href="/expert-insights/resilience-latent-defects-insurance-a-catalyst-for-higher-property-valuations-and-resale-confidence">decides to sell within the first 10 years</a>, 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% of buyers are willing to pay an additional 1.5% for LDI coverage. This premium often more than covers the cost of the policy for the developer. Typically, developers pay about 1.5% 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 extra layer of protection through the Technical Inspection Service (TIS). 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 impact buyer confidence today. 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, LDI offers first-right protection, 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

Latent Defects Insurance 101: Five minutes with Resilience Insurance CEO Corey Nugent on Australia's most comprehensive new apartment development insurance

Resilience Latent Defects Insurance

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