Australian-first insurance product to protect apartment buyers from structural defects

Australian-first insurance product to protect apartment buyers from structural defects | Insurance Business

Australian-first insurance product to protect apartment buyers from structural defects

A building insurance specialist has introduced a new product to protect apartment buyers and owners from structural defects.

BuildSafe Insurance Brokers is partnering with Lloyd’s underwriters to offer Latent Defect Insurance, a 10-year insurance policy that covers structural defects that occur within the 10-year policy period, and is transferrable to future purchasers. 

The one-of-a-kind insurance product will respond to defects and not on whose fault or negligence caused the defect, ensuring quick repair of the defect and minimising loss of use of the building. Removing legal costs in proving who is at fault and pursuit of those responsible also means cost and time savings for owners/developers if a structural defect occurs.

“This is a game changer for the building industry with the recent high-profile structural defect events,” said Philip Graf, managing director of BuildSafe. “The beauty of the product is that it is a 10-year policy which commenced at practical completion, non-cancellable, and transferrable, underwritten by Lloyd’s. This new product provides peace of mind for the owner or tenant and takes the headache and stress out of fixing faults and complications with their home and to not have to be in the middle of a costly legal dispute. This is just the confidence in the building industry that financiers and purchasers need. Now they have an insurance policy in place to protect them in the event of structural defects with no loss of asset value.”

Buildsafe Latent Defects Insurance policy is now available for homeowners, tenants, builders and developers Australia-wide.