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    Builder Insurance and Warranties: What Melbourne Homeowners Should Know

    5 min read

    Insurance and warranties exist to protect you when things go wrong. Understanding what your builder should have, and what you are entitled to as a homeowner, is an important part of making a confident decision about who builds your project.

    Public liability insurance

    Public liability insurance covers damage to third parties or their property during the course of building work. If a tradesperson accidentally damages your home, your neighbour's property, or injures someone during the build, public liability insurance covers the cost.

    We carry $10,000,000 in public liability cover. This is well above the minimum required and reflects the scale and quality of projects we undertake. Always ask any builder for a certificate of currency before work begins.

    Domestic building insurance

    For domestic building work valued at $16,000 or more in Victoria, domestic building insurance is required. This insurance, sometimes called builder's warranty insurance, protects the homeowner if the builder dies, disappears, or becomes insolvent during or after the build.

    The insurance covers defects in the work for up to 10 years for structural defects and 6 years for non-structural defects. The builder arranges this insurance before work begins, and you should receive a certificate before the project starts.

    Statutory warranties under Victorian law

    The Domestic Building Contracts Act 1995 provides implied warranties on all domestic building work in Victoria. These include warranties that the work will be carried out in a proper and workmanlike manner, that the materials will be good and suitable for their purpose, and that the work will comply with all relevant laws and regulations.

    These warranties apply for six years for structural work and two years for non-structural work from the date of completion. They cannot be contracted out of, meaning they apply regardless of what the contract says.

    Want to work with a builder who is properly insured and stands behind their work?

    Schedule a Call

    How we handle insurance and warranties

    We maintain current public liability insurance of $10,000,000. Our fencing carries a 10-year warranty because we know the construction is right, with quality treated posts, proper cement, and screwed connections.

    If an issue arises after we complete a project, we come back and address it. We follow up with every client a week after completion to check everything is settling in well, and our door is always open for questions or concerns down the track. If you have questions about our insurance coverage or warranty terms, get in touch and we are happy to walk you through the details.

    In this article
    Public liability insuranceDomestic building insuranceStatutory warranties under Victorian lawHow we handle insurance and warranties
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    146 Ballan Road, Werribee VIC 3030

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