A new insurance product, Latent Defects Insurance (LDI), is set to transform the insurance framework for high-rise residential buildings – especially if it becomes mandatory in New South Wales.

This major development is aimed at restoring consumer confidence in the NSW residential construction industry in the context of the state’s “building compliance crisis” and its sweeping legislative and regulatory reforms.

Partners Robert Finnigan and Wes Rose, special counsel Nicholas Maiorana and solicitor Mansoor Sherzadah explain how the potential changes are likely to strengthen insurers’ abilities to assess and price risk in the NSW construction industry.