This is insurance that you take out for your client on works over $16,000. It was previously known as 'builders warranty insurance'.
You must provide your client with a copy of the policy and a certificate of currency covering their property before you take a deposit or any other money.
For more information, view Taking payments for home building.
The insurance covers your client if, before work is complete, you:
- are declared insolvent
It covers costs up to $300,000 to fix structural defects for six years, and non-structural defects for two years.
In all other cases, it is up to you to fix or complete works, or to pay any costs awarded.
Builders can manage their domestic building insurance by using the Victorian Managed Insurance Authority's BuildVic online portal. To find out more about accessing BuildVic, visit Builders - VMIA website.