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:
- die
- are declared insolvent
- disappear.
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.
The Victorian Managed Insurance Authority is a significant provider of Domestic Building Insurance in Victoria, however there are now a small number of other commercial providers. Builders are encouraged to do their research to find a provider that best meets the needs of their business.