Builders Warranty Insurance Victoria>>>

Builders Warranty Insurance VIC

Policy Covers

Builders Warranty also referred to as Domestic Builders Insurance protects the home owner if the Builder lose their deposit, don’t finish the job or it’s defective, and the builder dies, disappear or become bankrupt.


Home Warranty Insurance is designed to protect the home owner in providing security that a Licensed Builder will complete the work and will be around for a six year period to remedy any defects or problem areas.

Major Changes
Major changes occurred on July 1st 2017 to Domestic Builders Insurance (Formally known as Builders Warranty)in Victoria. We can still assist with your requirements regardless to these changes, we have access to the two insurers in the Warranty field to find the best option for you.

The law requires a builder to meet certain obligations when they do building work.

By law, Builders or tradespeople must take out Domestic Builders Insurance for their clients when the cost of the works exceed $16,000. Domestic Builders Insurance previously known as Home Warranty Insurance protects homeowners in the event that their building project cannot be completed or has defective works which cannot be rectified because their builder has:
died, disappeared or become insolvent; or
failed to comply with a Tribunal or Court Order where DBI was issued by VMIA on or after 1 July 2015.

In Victoria it is the builders’ responsibility to purchase DBI for the building project on behalf of the homeowner.

What’s included in the Policy:

  • Non Structural Defects – For two years after the completion of work or termination of the building contract.
  • Structural Building Defects – For six years after the completion of work or termination of the building contract.
  • Incomplete works – Up to 20% of the building contract price including agreed variations.
  • Other losses: Out of pocket expenses such as removal and storage, temporary fencing and loss of deposit.

Licenced builders will need to demonstrate financial robustness in the following areas:

  • Gross profit margin
  • Debtor collection days
  • Creditor payment days
  • Turnover growth
  • Changes to work in progress
  • Builder size and areas of construction activity
  • Length of time in the industry
  • Adverse commercial and claims information
  • Frequency of financial reporting
  • Job costing system

Why Choose BuildSafe?

  • Being a Specialised Building Industry broker who has been dealing with Warranty Insurers since 1996, we have an experienced team available to help you clear up any issues with the insurer, so you you can get back to doing what you do well – building! Carmen and the team look forward to helping you with the process of Warranty Insurance.

BuildSafe Insurance Brokers can provide Domestic Building Insurance in Victoria. So we can look at the best option for you and your business, get in touch and we will do the rest!

FAQs

Got a Question about Builder Home Warranty Insurance/ Domestic Building Insurance? We’ve got the Answer!


BuildSafe have been issuing Home Warranty Certificates for over 20 years , we understand the right steps to helping your business grow. We will work on your behalf to get the turnover you want to achieve. We can liase with distributors and insurers for requests for higher limits, changes to save you time. “We dont make it complicated!”
Builders need to apply with what is called a Letter of Eligibility. The process with BuildSafe differs depending on how long you have been in business for. We may only require very minimal details if you have been in business for years. Regardless of whether you have been in business for 10 years or 2 weeks, we can help and provide you with the best options.
BuildSafe can process and administer Certificates on your behalf and in additional support you is using any insurer portals if assistance is required. We can do everything for you.
A builder must provide an owner with Domestic Builders Insurance in Victoria when domestic building work is done in excess of $16,000 in Victoria.
BuildSafes can also provide various contracts to our Builders at no additional cost, depending on the amount of projects you do.

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