At FD Beck, we can assist you with all aspects of your owner builder warranty insurance, from finding you the best available policy to making sure you understand the terms and conditions of your insurance, we’ve been helping Victorian owner builders with their insurance needs for generations.
Owner Builder Domestic Building Insurance (DBI) (also commonly referred to as Owner Builder Warranty Insurance) is for the benefit of the purchaser or subsequent purchaser of your property and not the owner builder. It covers the homeowner in certain circumstances where the building work is incomplete or defective and the owner builder has died, disappeared, or become insolvent.Since 1st July 2015 cover is also available in certain circumstances if the owner builder has failed to comply with a Victorian Civil and Administrative Tribunal (VCAT) or court order.
Owner Builder Warranty Insurance may also cover expenses such as alternative accommodation, removal and storage that are reasonably and necessarily incurred for a period of up to 60 days.
Under section 135 of the Building Act 1993, Victorian owner builders who sell their property without obtaining the necessary owner builder home warranty insurance can face fines and penalties of $15,546 (exact figures are subject to change).
The purchaser of the property will also have the right to void the contract of sale and have their deposits refunded in full if the owner builder doesn’t obtain adequate owner builder home warranty insurance.
The policy will provide cover for any loss or damage arising from non-structural defects, commencing on the date of the contract of sale and ending two years after the work’s completion date. So, if you’re selling your house more than two years after the work’s specified completion date, the policy won’t cover any losses or damage that arises from a non-structural defect.
Your insurance policy will provide cover for any loss or damage that arises from any cause other than non-structural defects from the date specified on the contract of sale until six years after the work’s specified completion date.