Protecting Homeowners from Defective or Incomplete Work
Domestic Building Insurance (DBI) protects Victorian homeowners when building work is defective, incomplete, or abandoned. Without it, homeowners risk costly repairs and limited options for recovery.
Who Needs It
Mandatory for residential building projects over $16,000 in Victoria
What It Covers
Defective & incomplete work if builder dies, disappears, becomes insolvent, or ignores orders
Why It Matters
Protects homeowners from costly repairs and financial loss
How We Help
Clear advice, strong representation, and support with DBI claims
Understanding domestic building insurance in Victoria
Domestic Building Insurance (DBI) is a legal safeguard that protects building owners when domestic building work is defective or incomplete. This type of insurance provides financial protection in situations where the builder cannot meet their legal obligations due to death, insolvency, disappearance or, in some cases, failure to comply with tribunal or court orders.
In Victoria, domestic building insurance is required for most residential building projects with a contract value of $16,000 or more.
FAQ
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If you are a homeowner or consumer entering into a domestic building contract valued at $16,000 or more, you should receive a copy of the Certificate of Currency for domestic building insurance. This certificate should be provided by the time you sign the building contract or when the building permit is issued, whichever occurs first.
Failure to receive this certificate can leave you exposed to significant risk if problems arise during or after construction.
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For building work covered by domestic building insurance, the period of protection begins on the earlier of the following:
The date the building contract is signed
The date the building permit is issued
The coverage then extends:
Two years from the date of completion or termination of the contract for non-structural defects
Six years from the date of completion or termination for structural defects
Cover applies to the building owner named in the contract, and also to future owners, subject to the Building Act 1993 (Vic), any relevant Ministerial Order, and the terms of the insurance policy.
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Domestic building insurance is not a general building warranty and can only be relied upon in limited situations. Generally, a claim may be made if the builder:
Has died
Is declared insolvent
Cannot be located
For policies issued on or after 1 July 2015, claims may also be available where the builder has failed to comply with a tribunal or court order.
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For policies issued by the Victorian Managed Insurance Authority (VMIA) on or after 1 July 2017, coverage includes:
Primary Cover:
Loss or damage due to incomplete building works
Defective domestic building works
Supplementary Cover:
Costs for temporary accommodation, removal and storage
Loss of a deposit or partial progress payment
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The following limits apply to policies issued by the VMIA after 1 July 2017:
A maximum of $300,000 in total for all claims under one policy per home, including legal costs
A limit of 20 percent of the contract price for claims relating to non-completion
Applicable policy excesses will be deducted by the insurer
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Domestic building insurance does not apply to buildings with more than three storeys of residential accommodation. These types of dwellings fall outside the scope of DBI and may require different protections.
How we help…
We assist homeowners who are affected by incomplete or defective building work.
If you are unsure about your domestic building insurance rights, or if your builder has died, become bankrupt or cannot be found, we can help you:
Review your building contract and insurance documentation
Understand whether you are eligible to make a DBI claim
Guide you through the claims process with the VMIA or other insurers
Take legal steps if necessary to protect your interests
“Very pleased with the professionalism and advice of Dean in helping us get to an excellent settlement outcome…”
We are very pleased with the professionalism and advice of Dean in helping us get to an excellent settlement outcome. Dean was always very knowledgeable, courteous and prompt in his advice and execution, with excellent attention to detail and drafting skills. We rate Dean 5 out of 5 on all scores!
- TL
Contact us
We are here to help you navigate complex building disputes with clarity and confidence.
Having certain information and documents ready can help us assess your enquiry more efficiently. If you don’t have everything available, please contact us and we will guide you through what’s required.
* Reforms under the Building Legislation Amendment (Buyer Protections) Bill 2025 are not yet in effect; the information above reflects the current law.