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.

Joel Robinson

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

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="/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="/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="/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="/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="/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="/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="/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.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/uV-8Z3O3qH4?si=B-LsOmHGJeBM4JHj" title="YouTube video player" width="560"></iframe>

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="/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

Residential developer Third.i is the latest to provide its buyers with the most comprehensive insurance policy in the off the plan apartment market.

They've taken out Latent Defects Insurance (LDI) from Resilience Insurance, a first-party insurance that safeguards against structural and construction defects for up to 10 years, meaning unforeseen issues can be addressed without major financial burden.

The policy offers both developers financial protection and instills buyers with confidence in their purchase.&nbsp;Dairy Farmers is the first development in Newcastle to have the insurance.

Developers who implement LDI must adhere to high construction standards, comply with regulations, conduct thorough risk assessments and maintain financial stability to mitigate potential financial risks associated with latent defects.

"Introducing Latent Defects Insurance is a testament to our commitment at Third.i to building homes and spaces that offer our buyers lasting peace of mind and ensures they feel confident in their investment,” said Luke Berry, Co-Founder of Third.i.

“We take immense pride in our Dairy Farmers Towers project and the high standards we've upheld every step of the way. Our LDI insurance reflects our dedication to assuring our buyers that we stand behind the quality and durability of our work. As we eagerly anticipate its completion, we're thrilled to see this project come to life, creating homes that families can trust and enjoy for generations to come."

Dairy Farmers Towers is set to complete construction in mid-2026, with multi-award-winning construction company Decode appointed to deliver the project.

“We’re excited to be working with Third.i on this project in the heart of Newcastle’s West End," said said Jack 
Peschardt, Construction Manager&nbsp;at Decode.

"This development represents a significant milestone for the area and reflects our shared commitment to contributing to the growth and vibrancy of the community."

Almost 80 per cent of the 180 one, two and three-bedroom apartments have sold. The project will encompass a range of deluxe on-site amenities, including communal green spaces, a state-of-the-art gym, an elevated north-facing outdoor swimming pool and sundeck, a wine bar and cellar, as well as an exclusive residents’ only shared work hub.

Remaining apartments range from $595,000 to $2,695,000.

In addition, as an ode to Newcastle's history, the project will also re-imagine the heritage-listed, iconic glass milk bottle and clock towers as part of a pedestrianised, broader public art installation.

[smartcode_project_cta:default project_id=109979]

Third.i to protect apartment buyers at Newcastle's Dairy Farmers Towers with leading 10-year Latent Defects Insurance

Resilience Latent Defects Insurance (LDI) is reshaping the way building defects are managed in Australia, providing the most extensive cover for off the plan property buyers in the market.

<h2>What is Resilience LDI?</h2>

Resilience LDI is the <a href="/news/what-is-latent-defects-insurance-and-is-it-bringing-confidence-to-the-off-the-plan-apartment-market">first Latent Defects Insurance policy in Australia</a>. The insurance 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;

The cover is purchased pre-construction by the property developer or builder and is designed to protect apartment owners against any immediate or future problems with the structural components of their new property, from leaks to cracks and everything in between.

<h2 id="ember48">Understanding first resort strict liability Latent Defects Insurance</h2>

First resort, strict liability LDI marks a significant advancement in consumer protection in the building industry. Unlike traditional insurance, which requires proving fault or negligence, this insurance operates on a strict liability basis. This means that issues can be addressed without needing to establish fault first—a long-standing problem in new developments. This delay often leaves consumers at a disadvantage, as problems remain unresolved while legal battles drag on, leading to increased costs and frustration

With strict liability insurance, consumers are entitled to compensation without navigating the complexities of proving fault or negligence. This streamlines the claims process and ensures faster resolution, providing&nbsp;consumers with primary coverage for damages resulting from latent defects, without the need to establish fault on the part of the builder or developer.

<h2>Further strengthens build quality</h2>

Latent Defects Insurance is a key indicator of build quality.&nbsp;Before a policy is issued, the construction process undergoes rigorous inspections by accredited independent experts.&nbsp;

These inspections ensure that any defects are identified and rectified during construction, not after.&nbsp;This proactive approach means that buyers can be more confident in the quality of their new apartment.

<h2>Increase apartment value</h2>

With LDI, buyers can rest assured that their property is safeguarded against structural defects for a decade after completion. This long-term coverage adds significant value to the property, making it more appealing to future buyers and potentially increasing resale values. Subsequent buyers will benefit from LDI coverage for the remainder of the 10-year policy on their newly purchased apartment.

Latent Defects Insurance is only being offered by Resilience Insurance in Australia. LDI has been a common policy worldwide for over seven decades, with over 40 countries offering LDI to new apartment buildings.

As a buyer, LDI isn't a policy you can take out individually on your apartment. Your new development either has the Resilience Latent Defects Insurance policy or it hasn't. Several of Australia's largest developers, such as Deicorp and Urban Property Group.

Latent Defects Insurance is only being offered by Resilience Insurance in Australia. LDI has been a common policy worldwide for over seven decades, with over 40 countries offering LDI to new apartment buildings

The advantages of first resort, strict liability, Latent Defects Insurance for off the plan property buyers

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="/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="/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="/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="/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="/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="/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="/developers/deicorp" target="">Deicorp</a>,&nbsp;<a href="/developers/kanebridge">Kanebridge</a>, <a href="/developers/princeton">Princeton</a>,&nbsp;<a href="/developers/abadeen-group">Abadeen</a>,&nbsp;<a href="/news/coronation-property-launches-its-first-release-in-merrylands-development-mason-main" target="">Coronation Property</a>&nbsp;and&nbsp;<a href="/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="/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="/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

Billionaire Gerry Harvey takes out Resilience Insurance Latent Defects Insurance on new Dubbo apartment development

The disastrous structural problems at Mascot Towers, and to a similar extent, Opal Tower in Sydney Olympic Park, have significantly impacted people's perceptions of the off-the-plan apartment market.

Mascot Towers, built by J&amp;B Elias Pty Ltd, was evacuated in 2019 due to cracking walls, while Opal Tower, in Sydney's Olympic Park, saw around a third of its residents evacuated for the same reason six months earlier, on Christmas Eve 2018.

The catastrophic failures of the developers and builders of these two towers, along with the ongoing fallout that continues for Mascot Towers owners even five years later, have been major issues in the Australian building environment.

These two major incidents, which constitute a small portion of the market but capture the headlines more than a completed building with no issue, unfortunately tarnishes the reputation of the broader industry, an industry which is seeking to provide housing for Australians.

Fortunately, significant changes have occurred in the building industry since then. Outgoing Building Commissioner David Chandler, who inspected residential development sites and publicly provided feedback on the construction process, asserts that prospective purchasers of off the plan apartments in NSW now face a more level playing field in their favor over recent years.

"This week, various industry and consumer forums have heard testimonies indicating a more trustworthy market. Purchasers are now empowered to make more informed decisions about investing in one of the largest purchases of their lives," Chandler recently stated.

New consumer-facing tools, such as the iCIRT rating service, have helped educate buyers on who are trustworthy developers and builders. Nonetheless, the 10-year Latent Defects Insurance offered by Resilience, remains unparallelled in instilling confidence.

Their new policy, <a href="/news/what-is-latent-defects-insurance-and-is-it-bringing-confidence-to-the-off-the-plan-apartment-market">Resilience LDI</a>, protects buyers from structural defects for 10 years following the building's completion.

The Mascot Towers fiasco would have played out significantly differently had Latent Defect Insurance been available back then.

Corey Nugent, CEO of Resilience Insurance, believes several issues would not have occurred if the building had been covered by <a href="/news/resilience-latent-defects-insurance">Resilience LDI</a>.

"The first critical factor is build quality," Nugent explains. "Buildings covered by Resilience LDI undergo regular inspections by experts who assess construction quality frequently. This proactive approach ensures that potential problems are identified and rectified in the construction process, long before residents move in."

If any issues impacting structural integrity are missed during inspections, Resilience LDI steps in to protect both apartment owners and developers.

"We implement stringent construction checks to prevent such occurrences in LDI-covered buildings. However, should an issue arise, the policy kicks in immediately to rectify any problems," Nugent adds.

"If the issue renders the building unsafe for occupancy, affected homeowners are promptly provided with fully covered temporary accommodation. There's no protracted process of blaming and finger-pointing among developers and builders."

Developers currently collaborating with Resilience report that prospective buyers are more confident in purchasing properties covered by Resilience LDI. Research data from MatterFact, a data product from Apartments.com.au, shows that 70% of off-the-plan apartment buyers would pay more if their apartment had the Resilience LDI policy.

Leading developers like Deicorp, Abadeen, Urban Property Group, Coronation Property and Princeton have already adopted the Resilience LDI policy for several projects and plan to utilize it in their future developments.

To find out more about Resilience Latent Defects Insurance, <a href="/news/what-is-latent-defects-insurance-and-is-it-bringing-confidence-to-the-off-the-plan-apartment-market">click here</a>.

What would have happened if Mascot Towers had Resilience Latent Defects Insurance 

Prominent Sydney builder-developer Urban Property Group was the first developer in the country to take out the new 10-year Latent Defects Insurance offered by Resilience Insurance.

The insurance is proving to be a major drawcard for off-the-plan apartment buyers due to its dual benefits. There are frequent site and build inspections to ensure faultless construction. Additionally, should any structural defects arise upon completion or within the next 10 years, the insurance covers any out-of-pocket expenses buyers might face.

Since including the policy on their Parq Bexley project, Urban Property Group has taken it out on their new Macquarie Park development La Vera, and they're not stopping there.

[smartcode_project:default project_id=134951 project_image_fid=223715]

The state-wide developer is putting the product in front of more off the plan buyers than anyone in Australia. They'll be the first to offer the policy on new apartments in Penrith, at their Mayfair by Penrith precinct-style development, as well as the first in the prized Eastern Suburbs beachside market where they're building it into their feasibilities for Coast in Little Bay.

"Anything we can do to give confidence in our product is a plus," Urban Property Group CEO Patrick Elias told Urban.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. They're making their single large investment, which is their home, and providing confidence is something that we feel is paramount."

Urban Property Group, which has developed thousands of new dwellings across Sydney over the last 35 years, was also an early adopter of the iCIRT rating system.

"The two complement each other and show prospective buyers there's no risk buying with us," Elias added.

"Having the policy doesn't change our product, it just changes the mindset of the purchaser. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share."

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>

Urban Property Group recently took over the development of Central Coast Quarter from St Hilliers. Elias says one of the advantages of LDI that benefits both buyers and developers is the incremental inspections that are undertaken by experts.

"If for whatever reason a developer or builder goes into administration, there's a third-party, independent record of what's been built to date, which is an important factor for both buyers who have bought into a development as well as a developer or builder taking over a project. It assures build quality throughout the process."

Urban Property Group's next development to launch with Resilience LDI will be <a href="/new-apartments/mayfair-on-penrith-172-lord-sheffield-circuit-penrith">Mayfair</a> in Penrith, their sixth and final development in the Thornton precinct.

The two-building development will comprise around 287 apartments by SJB, with the&nbsp;two-level colonnade reminiscent of Sydney's GPO building. The apartments will sit above significant retail on the&nbsp;large 8,280 sqm, Lord Sheffield Circuit site opposite the Penrith Station.

<img alt="Mayfair" data-entity-type="file" data-entity-uuid="fa181e55-fe1a-47c8-b503-a47abaf20b07" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202024-06-26%20at%2010.58.29%E2%80%AFAM.png?VersionId=V8LWOz22ZEkl6lx5zywWW3GmU3AHqI4k" />

Urban Property Group is also expecting to be offering the policy to buyers at Coast, their Little Bay apartment development they're hoping to launch early next year. It will be the first beach suburb to have LDI.

Coast will have around 75 apartments across three low-rise buildings on over one hectare of bushland at 11 Jennifer Street.&nbsp;

The project designed by <a href="/architects/hill-thalis-architecture-urban-projects-pty-ltd">Hill Thalis Architecture</a> adopts the courtyard apartment type, which Hill Thalis founding principal Philip Thalis says is puzzlingly rare in Australian cities, despite its suitability to the climate and long architectural traditions of sociability.

<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,&nbsp;<a href="/news/what-is-latent-defects-insurance-and-is-it-bringing-confidence-to-the-off-the-plan-apartment-market">click here</a>.

Urban Property Group to take 10-year Latent Defects Insurance to Penrith and the Eastern Suburbs: Five minutes with Patrick Elias

Lower North Shore developer WINIM has been one of the most active in taking up the new 10-year Latent Defects Insurance offered to developers by Resilience Insurance.

<a href="/news/what-is-latent-defects-insurance-and-is-it-bringing-confidence-to-the-off-the-plan-apartment-market">Latent Defects Insurance</a>, or LDI, the new game-changing policy that has just made it to Australia, 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:&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>

In a short space of time, WINIM has taken the policy out on two of its latest residential developments, and it now forms a strong part of its business model,&nbsp;WINIM's Senior Development Manager Peitra Creak says.

Creak says the team were completely sold on the insurance once they understood the intricacies of the policy and how it works for both the purchaser and the developer.

Creak underscores its value as having a "dual benefit," for both developer and purchaser.

"First and foremost, Resilience LDI is a purchaser-led policy that protects off the plan property buyers and will drive confidence in our industry," Creak says, adding that there are significant benefits to the developer that make it even more attractive.

[smartcode_project:default project_id=143528 project_image_fid=253689]

"The last few years have been such a wild ride and we can't have predicted what has happened in terms of builder insolvencies, but we can learn lessons from it. We believe having Resilience LDI, as well as partnering with an iCIRT-rated builder, we're pre-empting and avoiding future issues in the built environment."

Creak says one of the biggest bonuses of Resilience LDI is that they get another set of eyes during the build process, something that can prove invaluable during the construction phase.

"The insurer is there to de-risk the project, and they do so by partnering with developers with a track record, strong finances, and consistently being a part of the build process. They have their teams on site before a shovel has been put in the ground, undertaking technical inspection services at frequent intervals."

[smartcode_project:default project_id=142292 project_image_fid=228505]

The fact Resilience LDI is a first right insurance was also another value add.

"With it being a first right insurance, we can factor it into our feasibility well before we start building the project. It also means that action is taken as soon as an issue occurs during the build, rather than at the end of construction.&nbsp; That means for buyers they don't have to pay a penny if there's any sort of rectification order, and, if it ever came to it, they would have accommodation paid for if they couldn't occupy the building."

Creak says they think developers could fall behind if they don't have Resilience LDI.

"If there are two similar, competing projects in the same area, then the buyer is definitely going to opt for the one with LDI over the one that doesn't have the policy."

WINIM has several new developments on the way, in Lane Cove and Neutral Bay, that they intend on taking out the Resilience Latent Defect Insurance policy on.

<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,&nbsp;<a href="/news/what-is-latent-defects-insurance-and-is-it-bringing-confidence-to-the-off-the-plan-apartment-market">click here</a>.

Resilience Latent Defects Insurance

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