Better protection against apartment building defects

Tell us what you think about a 10-year insurance scheme for new apartment buildings. We want to hear from developers, builders, insurers, apartment owners and people looking to buy.

We are working with industry to improve confidence in the NSW construction sector.

In August 2022, a Ministerial Advisory Panel representing industry, building owners and government recommended a new consumer protection for apartment buildings called decennial liability insurance (DLI).

DLI is a strict liability insurance product of first resort that covers critical building elements, such as structure, waterproofing and fire safety systems. It allows building owners to make a claim at any point in the first 10 years post occupation – even if the developer or builder are no longer trading.

We want to hear from you on how we can improve consumer protection for apartment owners by making DLI permanent and replacing the existing two-year Strata Building Bond Inspection Scheme (SBBIS) after a transition period.

We are seeking public feedback on proposed options to deliver this important protection.

Tell us what you think

Help us understand your thoughts on these options:

1. A mandatory 10-year insurance scheme that replaces the SBBIS scheme.
2. An optional 10-year insurance scheme available as an alternative to an updated SBBIS scheme.
3. No change – current SBBIS scheme continues and 10-year insurance scheme remains optional.

To have your say, you can complete a survey, upload a submission or take the quick poll.

For more information, download the Regulatory Impact Statement or read a summary of the key points.