Domestic Building Insurance

Domestic Building Insurance is a legislated, mandatory policy for certain domestic building undertakings which is underwritten by the Victoria State Governments insurance arm- the VMIA.

Who needs it?

Builders who are undertaking domestic building works greater than $16,000 in the state of Victoria are obliged to take out a DBI policy on behalf of their client. Works that require such a DBI policy include:

Construction of a domestic dwelling, including ancillaries such as swimming pools, fences and landscaping.

Renovation of a domestic dwelling, the works of which are worth over $16,000. Demolition of a domestic dwelling.

The provision of sewage works, air-conditioning/ heating works and lighting works, the price of which is over $16,000.

Why do we need it and what does it cover?

The policy is legislated to protect owners of domestic dwellings in instances of “last resort”. This consists of construction works that may not have been completed due to a builder dying, disappearing or becoming insolvent. Home owners are able to claim up to a maximum of $300,000 to rectify such instances.

When does the cover start?

Cover commences on the date of the building contract or the date of the building permit- whatever is earliest. Cover ceases 2 years after completion for non structural works, or 6 years after completion of structural works.

How do I apply?

Eligibility; to apply for Individual DBI policies, eligibility must first be granted. This is done by filling in the below form. Once eligibility is established, for each project you wish to undertake which requires DBI you must fill in an application form and submit a copy of the building contract to your broker, who will then, upon receipt of payment issue building certificates.

How can Midland Help?

Midland is one of only a handful of Victoria brokers eligible to handle DBI policies. Our experienced professionals can talk you through all steps of the process, which at times can be quite complex. Call us on 03 9349 2733 to talk to one of our brokers.