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ARTICLE · 17 JANUARY 2022

Decennial Liability Insurance

Vincent Young
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After a spate of issues plaguing the building and construction industry in recent years, the NSW government is proposing the introduction of a decennial liability insurance scheme (DLI)...

AustraliaReal Estate and Construction
Vincent Young
Vincent Young

After a spate of issues plaguing the building and construction industry in recent years, the NSW government is proposing the introduction of a decennial liability insurance scheme (DLI) with the view of increasing protections for owners and purchasers of residential apartments.

What is DLI?

DLI is a mandatory defects insurance scheme which affords purchasers of residential apartments protections in the event that the building suffers from total or partial collapse or the building contains structural defects that affect the building's stability. A DLI policy is taken out by the developer or builder of a building (depending on jurisdiction) and must be obtained for a period of no less than 10 years after the completion date.

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