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:
Why Choose BuildSafe?
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
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