Victoria’s Domestic Building Insurance (DBI) may apply to eligible domestic building work under a contract signed before 1 July 2026, and DBI was required for work valued over $16,000, according to the Building and Plumbing Commission (BPC) in guidance updated 1 July 2026. For homes up to three storeys, that guidance says DBI generally provided up to $300,000 for loss suffered because the builder died, disappeared or became insolvent.
Figures checked 1 October 2026.
Which scheme applies before and after 1 July 2026?
The BPC says the applicable scheme depends on when the building contract was signed and when the insurance cover was issued. Its published position is:
| Scheme | Contract and value rules | Protection described by the BPC |
|---|---|---|
| Domestic Building Insurance | May apply to eligible domestic building work under contracts signed before 1 July 2026. DBI was required for work valued over $16,000. | For homes up to three storeys, generally up to $300,000 for loss suffered because the builder died, disappeared or became insolvent. |
| Home Warranty | Starts on 1 July 2026 and may apply to new eligible domestic building work under eligible contracts signed on or after that date. It applies to eligible work valued at more than $20,000. | May apply where work is incomplete, defective or non-compliant and the builder fails or refuses to complete or fix it. It is not limited to the builder’s death, disappearance or insolvency. Maximum assistance is $400,000 in total per home, subject to eligibility, limits and exclusions. |
Does a pre-cut-off contract continue under DBI?
The contract date is important, but it is not the only date to check. The BPC says the scheme also depends on when the insurance cover was issued.
If your DBI Certificate of Insurance was issued before 1 July 2026, your cover continues under your DBI policy. The BPC specifically confirms this where the contract was signed before 1 July 2026 and you hold a DBI certificate. Existing DBI policies continue under their current terms and conditions.
DBI cover does not transfer to Home Warranty. A homeowner should therefore identify the scheme from the contract and certificate dates rather than assuming that all work at the same property follows the newer scheme.
What does the generally applicable $300,000 DBI amount mean?
The BPC’s description of DBI is tied to defined events:
- the home is up to three storeys;
- the builder has died, disappeared or become insolvent; and
- the loss was suffered because of that event.
The generally applicable $300,000 amount should not be read as confirmation that every defect, delay, incomplete-work issue or other building problem is covered. The certificate and policy PDS set out the applicable terms, conditions and exclusions.
What is not confirmed about claim periods and non-completion?
The cited BPC guidance confirms the scheme cut-off, value threshold, cover amount and insured events. It does not confirm a time limit for structural or non-structural claims, or a percentage cap for non-completion claims.
Those details should not be inferred from the general DBI cover amount. Check the policy PDS for the applicable claim-notification period and any conditions concerning incomplete work.
What should be checked before relying on DBI?
Review the following:
- The date the building contract was signed.
- The issue date on any DBI Certificate of Insurance.
- The value of the domestic building work.
- The cover amount and insured events in the policy.
- The PDS definitions, exclusions and conditions.
- Any claim-notification time limits or non-completion provisions.
- The current information on the BPC regulator page.
Is DBI the same as public liability insurance?
No. DBI is a Victorian scheme tied to domestic building work, contract dates and specified builder events. Public liability insurance is a separate form of business cover.
The business.gov.au guidance on types of business insurance describes public liability insurance as cover for death, injury or property damage to another person caused by negligence. It also notes that some states and territories require public liability insurance for certain occupations. Do not assume DBI replaces a public liability policy or answers every liability claim.
General information only: This is not financial or legal advice. Check the BPC regulator page and the relevant policy PDS for the current position and your circumstances.
Sources
- Domestic Building Insurance and Home Warranty | Building and Plumbing Commission
- Types of business insurance | business.gov.au
FAQ
Does DBI still apply to a contract signed on 1 July 2026?
DBI may apply to eligible work under a contract signed before 1 July 2026. Home Warranty may apply to new eligible work under an eligible contract signed on or after 1 July 2026, under BPC guidance updated 1 July 2026.
Does work valued at exactly $16,000 meet the DBI threshold?
The BPC states the DBI requirement as work valued over $16,000 in its guidance updated 1 July 2026. It separately describes Home Warranty as applying to eligible work valued at more than $20,000.
Will an existing DBI certificate continue after 1 July 2026?
If the DBI Certificate of Insurance was issued before 1 July 2026, cover continues under the DBI policy and its current terms and conditions. DBI cover does not transfer to Home Warranty.
Does the $300,000 DBI amount cover every building loss?
No. BPC guidance updated 1 July 2026 ties the generally applicable amount of up to $300,000 to homes up to three storeys and loss suffered because the builder died, disappeared or became insolvent. Check the policy PDS for its precise terms.
Where should I confirm claim periods and non-completion conditions?
The BPC guidance cited here does not confirm the structural or non-structural claim periods or a percentage cap for non-completion claims. Check the DBI Certificate of Insurance, the policy PDS and the current BPC regulator page before relying on those details.
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