According to the Building and Plumbing Commission (BPC) in its Domestic Building Insurance and Home Warranty guidance, dated 1 July 2026, Home Warranty may apply to new eligible domestic building work valued at more than $20,000 under eligible contracts signed on or after 1 July 2026. Maximum assistance is $400,000 in total per home, subject to eligibility, limits and exclusions. For the earlier Domestic Building Insurance (DBI) scheme, the same guidance says DBI was required for work valued over $16,000 and generally provided up to $300,000 for homes up to three storeys for loss suffered because the builder died, disappeared or became insolvent. Figures checked 1 October 2026.
Which insurance applies to my Victorian building contract?
BPC says the applicable scheme depends on when the building contract was signed and when the insurance cover was issued. The transition table below sets out the cases described in its guidance.
| Building contract | Insurance cover or domestic building work | Position under BPC guidance |
|---|---|---|
| Signed before 1 July 2026 | A DBI Certificate of Insurance issued before 1 July 2026 | Existing DBI cover continues under the DBI policy and its current terms and conditions. |
| Signed before 1 July 2026 | Domestic building work valued over $16,000 under the pre-transition DBI scheme | DBI may apply. For homes up to three storeys, it generally provided up to $300,000 for loss suffered because the builder died, disappeared or became insolvent. |
| An eligible contract signed on or after 1 July 2026 | New eligible domestic building work valued at more than $20,000 | Home Warranty may apply from 1 July 2026. Maximum assistance is $400,000 in total per home, subject to eligibility, limits and exclusions. |
The contract date alone should not be used to change the insurance category. If the contract date and insurance issue date do not fit the cases above, check both records rather than assuming that one scheme replaces the other.
Does existing DBI cover transfer to Home Warranty?
No. BPC states that DBI cover does not transfer to Home Warranty, and existing DBI policies continue under their current terms and conditions.
This applies where the building contract was signed before 1 July 2026 and the DBI Certificate of Insurance was also issued before that date. The start of Home Warranty does not convert an existing DBI policy into Home Warranty cover.
What situations may Home Warranty cover differently?
DBI’s stated protection focuses on loss suffered because the builder died, disappeared or became insolvent. Home Warranty is not limited to those situations.
Home Warranty may apply where eligible domestic building work is incomplete, defective or non-compliant and the builder fails or refuses to complete or fix it. BPC describes this as potentially broader protection than DBI, but it does not mean every problem or loss is covered. Eligibility, limits and exclusions still apply, and the maximum assistance remains $400,000 in total per home.
The threshold wording also matters: BPC says more than $20,000 for Home Warranty, rather than $20,000 or more.
What records should I check?
Before relying on either scheme, check:
- the date the building contract was signed;
- the date the insurance cover was issued;
- whether the cover is DBI or Home Warranty;
- any DBI Certificate of Insurance;
- the value of the domestic building work; and
- the policy’s Product Disclosure Statement, or PDS.
Check the current BPC regulator page linked above as well, particularly if the contract or cover dates sit close to 1 July 2026. This is general information, not financial or legal advice.
Sources
FAQ
Does every contract signed on or after 1 July 2026 have Home Warranty?
No. Home Warranty applies to new eligible domestic building work under eligible contracts signed on or after 1 July 2026. The work must also be valued at more than $20,000 and satisfy the applicable eligibility requirements.
What happens to DBI issued before 1 July 2026?
If the contract was signed before 1 July 2026 and you have a DBI Certificate of Insurance issued before that date, your cover continues under DBI. Existing DBI policies continue under their current terms and conditions and do not transfer to Home Warranty.
Does work valued at more than $20,000 guarantee $400,000 in assistance?
No. The eligible value threshold and maximum assistance are separate points. Home Warranty may apply to work valued at more than $20,000, but the maximum of $400,000 is a total per home and remains subject to eligibility, limits and exclusions.
Is Home Warranty limited to a builder dying, disappearing or becoming insolvent?
No. It may also apply where eligible work is incomplete, defective or non-compliant and the builder fails or refuses to complete or fix it. Actual cover depends on the scheme’s eligibility requirements, limits and exclusions.
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