No—you cannot take out building indemnity insurance for the building work you are carrying out yourself. According to the SA Government’s building indemnity insurance guidance, updated 19 February 2026: a contractor must arrange and pay for cover when council approval is required and the work costs $20,000 or more; defective-work claims can usually be made up to 5 years from the date the building work was completed (figures checked 1 October 2026).
Who arranges building indemnity insurance?
Building indemnity insurance, often called BII, follows a different route depending on who is carrying out the work.
| Work arrangement | Building indemnity route |
|---|---|
| You carry out the domestic building work personally | You cannot take out BII. A builder cannot use the builder-arranged route to insure that self-built work. |
| A contractor carries out domestic building work requiring council approval and costing $20,000 or more | The contractor must arrange and pay for the policy. |
| Before the contracted work starts | The builder must have taken out the policy, and both you and the council must have received a copy of the certificate of insurance. |
The council-approval requirement and the cost threshold both apply to the contractor-arranged route described by the SA Government.
What does building indemnity insurance actually protect?
The SA Government describes BII as protecting you and future owners if the builder dies, disappears or becomes insolvent in relation to:
- work that has not been completed; or
- defective work that requires rectification.
That is a different purpose from ordinary public liability insurance or insurance for your own property and belongings.
What should a homeowner insure separately?
If you are carrying out the work yourself, ask an insurer or broker about suitable separate cover for your own work and property. The SA Government specifically says you also need to:
- protect and separately insure items you own that are at the building site during construction; and
- insure the building when construction is complete.
These needs sit alongside the BII system rather than being replaced by it. A policy covering liability to other people should not be assumed to cover damage to your own works, site items or building.
Is public liability insurance the same protection?
No. The business.gov.au guide to business insurance describes public liability as protection for death, injury or property damage suffered by another person because of negligence.
| Cover | Main protection described |
|---|---|
| Building indemnity insurance | You and future owners are protected in relation to uncompleted work or defective work requiring rectification when the builder dies, disappears or becomes insolvent. |
| Public liability insurance | It responds to liability for death, injury or property damage suffered by another person because of negligence. |
A standalone public liability policy is not a substitute for BII and should not be treated as the BII certificate required under the SA process. Even where public liability is relevant to general liability risks, it does not become owner cover for a DIY project merely because it responds to harm caused to other people.
How can you verify the builder’s policy?
- Read the contract and certificate carefully. Do not sign documents until you understand and are satisfied with their terms and conditions.
- Ask the contractor to explain any condition you do not fully understand.
- Confirm directly with the insurer whether a current BII policy is in place, verify its details and ask how the insurance works.
- Check that both you and the council have received a copy of the certificate before the work starts.
- Keep the certificate for your records. It identifies the builder’s name and licence number, insurer, issue date, description of the insured work, and any policy limitations or conditions.
What should you confirm before signing or starting work?
This is general information, not financial or legal advice. Before signing the contract or starting work, recheck the SA Government regulator page for current requirements and read the policy’s Product Disclosure Statement (PDS). Ask the insurer to explain any limitations, conditions or claim steps that are unclear.
FAQ
Can I buy building indemnity insurance for my own DIY project?
No. The SA Government says you cannot take out BII when you are carrying out the building work yourself. A builder cannot turn that self-built work into a builder-arranged BII policy. You should instead ask about separate insurance for your own work, property and items.
Who arranges and pays for BII for contracted work?
For domestic building work that requires council approval and meets the cost threshold, the contractor must arrange and pay for BII. You and the council must receive a copy of the certificate before the work starts.
Does public liability insurance replace BII?
No. Public liability addresses negligence-caused death, injury or property damage suffered by another person. BII addresses specified uncompleted or defective work concerns when the builder dies, disappears or becomes insolvent. The policies have different purposes and should not be treated as interchangeable.
How can I confirm that the builder’s BII is current?
Contact the insurer directly, review and verify the certificate, and keep a copy for your records. Check that the document identifies the builder, insurer, issue date, insured work and any limitations or conditions.
Sources
Partner links. Using them costs you nothing extra and may earn us a commission.