Resilience Insurance has launched a latent defects insurance (LDI) product for high-rise buildings, calling it a “game changer” for the construction industry, amid efforts by governments to strengthen protections for property owners.

The managing general agent says its product covers the property owner for a period of 10 years from the date of occupancy certificate, but declined to provide the name of its underwriting partner when asked by insuranceNEWS.com.au.

It is distributing the product through its authorised broking partners.

LDI, known also as decennial liability insurance or inherent defects insurance, provides cover for structural defects after a building is completed and is taken out by developers when a project starts.

“The Resilience Insurance LDI product fulfils the end game of ensuring maximum consumer protection for those property owners and residents of medium to high density residential living,” Resilience says in a statement.

“Assuring quality design and construction before completion of building and before owners take possession, will change the experience of stakeholders.”

The construction industry has been plagued by widespread reports of failures in design, workmanship and use of inferior materials, prompting a new push for stronger building standards and protections for owners.

NSW has been working to introduce decennial liability insurance to protect apartment owners and a Ministerial Advisory Panel appointed to advise the government on the cover is expected to release its report this year.

A NSW Fair Trading spokesperson says the panel is currently preparing its advice to the NSW Government.

Resilience MD Stefan Hicks, who sits on the panel, tells insuranceNEWS.com.au the push for reforms in NSW and other states means “a product like LDI will have sustainability” in Australia.

“The feedback from the industry is very positive because what it does is it allows them to market their off-the-plan properties with a 10-year guarantee against defects,” he said.