Domestic building warranty insurance – are you covered?

In Victoria, a Domestic Building Insurance (DBI) provides cover to homeowners for incomplete or defective building work. As a homeowner, you are protected from any faulty building work by insurance held by your builder.

A registered domestic builder is required to carry DBI for all building contracts worth more than $16,000 (including labour and material costs) in value. DBI will cover costs up to $300,000 to fix structural defects for six years, and non-structural defects for two years.

A claim against this insurance can only be made if the builder dies, disappears or is becomes insolvent. For any DBI policies issued after 1 July 2015, a claim can be submitted if the builder has failed to comply with any tribunal or court order.

What is covered?

  • Incomplete works

Up to 20% of the building contract price, inclusive of costs such as temporary fencing, locksmiths, works insurance etc and building permits.

  • Structural building defects

Up to 6 years after the completion of work or termination of the building contract.

  • Non-structural building defects

Up to 2 years after the completion of work or termination of the building contract.

  • Other losses

Out of pocket expenses such as the removal and storage of household goods and temporary fencing, and loss of building deposit.

Time Limits

As the insurance only last for 6 years (2 years for non-structural) it is essential to have your insurer made aware of any incident that may affect the insurance.

You must make a claim within 180 days of becoming aware of an insurable event (including insolvency of the builder) – so it is essential to get your claim prepared early.

Our team at Oldham Construction Lawyers are skilled in preparing and advising on insurance claims.

Your building contract matter will be handled by our Director, Daniel Oldham and his dedicated team, who will strive to resolve any issues in the most cost effective and efficient manner.

To understand what you’re entitled to claim, and for assistance submitting a comprehensive and successful claim, please contact Daniel on (03) 9640 0002, or via email