The New South Wales government has passed the Fair Trading and Building Legislation Amendment Bill, paving the way for a nation-first 10-year insurance policy to protect apartment owners against major structural defects.
The passage of the legislation lays the final groundwork required to introduce Decennial Liability Insurance (DLI) to the market.
The decade-long insurance product will provide property owners with comprehensive coverage against repair costs stemming from serious building defects, directly addressing systemic issues highlighted by high-profile apartment failures such as Mascot Towers and Opal Towers.
DLI attaches directly to the building asset rather than individual developers or builders, ensuring owners remain fully protected for a decade even if the original construction firm enters liquidation or ceases operations.
Beyond introducing DLI, the legislation strengthens regulatory oversight across NSW’s property, construction, and conveyancing sectors. The bill arms NSW Fair Trading and Building Commission NSW with broader powers to cancel or refuse licences obtained through misrepresentation or invalid qualifications.
Additionally, private certifiers will no longer be able to surrender their registration to dodge disciplinary proceedings, while unsuitable operators with histories of misconduct face stricter barriers preventing them from entering or re-entering property industries.
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said DLI would deliver unprecedented peace of mind to buyers across the state, where over 75,000 homes are currently under construction.
“Decennial Liability Insurance will be a nation-first, giving homeowners and buyers the peace of mind that if something goes wrong, they won’t be left to deal with it alone,” Chanthivong said.
NSW Building Commissioner James Sherrard noted regulators are completing final policy assessments with prospective insurers, enabling endorsed DLI products to hit the market shortly.
“The laws will also provide us with more powers to keep certifiers accountable for their work even if they deliberately leave the industry to escape any potential regulatory action for misconduct,” Sherrard said.
With DLI policies set to roll out following government approval, the state government aims to restore homebuyer confidence while supporting new housing supply across New South Wales.