Builders Warranty Insurance

Victoria


In Victorian builders are required to take our Domestic Building Insurance (DBI) (also commonly referred to as Builders Warranty Insurance) for domestic building projects with the value more than $16,000.


Contact Now Call Us Now

Builder’s warranty insurance provides cover for loss or damage to homeowners or subsequent homeowners if the domestic building work is defective or incomplete and only if the builder has disappeared, died or become insolvent or for the insurance certificates that were issued after 1st July 2015, the builder has failed to comply with a Tribunal or Court Order.

CONTACT US TODAY

Get in touch with the expert brokers at FD Beck Insurance today and make sure you’re covered for all the right things.

What information is required when assessing and reviewing my eligibility?

Assessment considers different risks such as the risk that the builder becomes insolvent or disappears and the risk that the builder may undertake some domestic building works which are defective or might not be completed.

The assessment of the builder’s eligibility will include reviewing not only the builder’s but also its directors’ and/or partners’ previous building performance and their capabilities regarding the type and quantity of the projects they are willing to undertake and their technical and management skills.

The assessment also consists of reviewing builder’s business history and recent financial reports. The business’s key financial indicators should demonstrate solvency and ongoing financial viability.


The financial assessment process may include (but is not limited to) the following:
  • Net turnover growth
  • Net Tangible Assets
  • Shareholders’ Funds / Sales
  • Profit margins both Gross & Net
  • Work in Progress reports
  • Cash flow forecasts against actuals
  • Creditor payment days and debtor collection days
  • Working capital position
  • Return on equity and assets
  • Statement of assets & Liabilities for all directors or partners
  • Trust deeds

What is considered Structural Works?

If the alteration works include any of the items listed in the Structural column of the table below or if the alteration includes both Structural and Non-Structural items, it should be classified as structural. In all other cases the alteration works should be classified as Non-Structural.

Structural Non-Structural
Roof installation Cabinet joinery (separate contracts)
Decking Painting
Fencing Plastering
Tuck Pointing Wardrobe fit-out
Retaining Walls Hardware Installation
Patio Tiling
Balcony Carpeting
Kitchens-working wet areas
Bathrooms -working wet areas
Electrical
Rewiring
Brickwork
Pergolas ( if Building Permit is required)

Multiple Building Works

Development of 3 or more dwellings on one site where common works such as construction of a road, adjoining fire rated walls or common driveway are required is considered to be Multiple Building Works.

There are three scenarios associated with Multiple Building Works as explained below. You should provide the required documents for review before any warranty certificates can be issued for Multiple Building Works;

There is Contract for Common Property Works with a Body Corporate

One Certificate is issued for whole contract. The required documents are as follow:

  • A completed and signed Multi-unit application form
  • A copy of the executed Building Contract

A scope of works and any relevant plans/specifications (confirming common property works)

The Multiple Building Works is built for multiple owners with common property works and there are separate contracts with each individual owner

One Certificate is issued for each dwelling. The required documents are as follow:

  • A completed and signed Multi-unit application form
  • A copy of the executed Building Contract(s)

Site plans and any relevant specifications (confirming common property works)

The Multiple Building Works is built for a single owner on a single contract

One Certificate is issued for each dwelling. The required documents are as follow:

  • A completed and signed Multi-unit application form
  • Breakdown of the value of each unit.
  • A copy of the executed Building Contract
  • Evidence of ownership (certificate of title or rates notice or Copy of signed Transfer of Land if ownership has not yet been registered or a copy of the signed Contract of Sale if settlement has not yet been effected)

Proof of available funds. This could be letter of offer from the financier or bank statement depends on if project is to be fully or partially self-funded


Our Partners