Do Victorian builders still need domestic building insurance after 1 July 2026?

Which scheme applies to the contract

The contract date decides it. The BPC says Home Warranty replaced DBI for eligible domestic building work, and existing DBI policies stay under their original terms with no automatic transfer.

Sources[2][4]

Does Home Warranty apply to this job

From 1 July 2026, Home Warranty applies to eligible domestic building work valued at more than $20,000 for homes and residential buildings up to 3 storeys, unless an exclusion applies. Check the work value, the exclusions, the eligibility and whether the contract is insurable.

Use an approved distributor, even if you work through a broker. BPC's Minimum Financial Requirements replaced the old DBI eligibility assessment, and meeting them is not an automatic approval.

Sources[1][4]

When to pay, and what to keep

The builder pays the Home Warranty premium on the owner's behalf before the earlier of 10 business days after entering the major domestic building contract or eligible work starting. Work starts when tools or materials are first used on site, other than vegetation removal. Each eligible project needs its own premium and Notice of Cover, and eligibility alone is not cover for every project. The BPC issues a Notice of Cover when the premium is accepted.

Failing to pay an applicable premium is an offence. The cost can be reflected in the contract, so explain what it includes to the owner. Keep the contract, work value, Notice of Cover, premium payment record and any variation or amended Notice.

Sources[1][3]

Decision check you can copy

This is our suggested check, not a BPC form. Run it for each job before work starts.

INSURANCE DECISION CHECK: VICTORIA

Job and site: [address]
Contract signed by all parties on: [DD/MM/YYYY]
Contract date scheme [pre-1 July2026: check DBI transition / on or after: check Home Warranty eligibility]
Work value: $[amount]
Over $20,000? [yes / no]
Building up to 3 storeys? [yes / no]
Exclusion applies? [yes / no, which]
Approved distributor used: [name]
Premium paid on: [DD/MM/YYYY]
Due by (earlier of 10 business days after contract or work start): [DD/MM/YYYY]
Notice of Cover received and details match the job: [yes / no]
Variation changes the work value? [yes / no, amended Notice requested]
Filed by: [name, date]

Sources[1][2][3]

Common questions

Who pays for domestic building insurance in Victoria?

The builder pays on the owner's behalf. For major domestic building contracts entered on or after 1 July 2026 that is the Home Warranty premium, paid before the earlier of 10 business days after the contract or work starting. For contracts signed before that date, builders use DBI where required under the transitional arrangements.[3][2]