What DBI Covers You
Domestic Building Insurance gives you peace of mind by protecting your home if your builder goes bankrupt, performs substandard work, or simply walks off the job. This essential cover helps you finish your project or repair both major and minor defects for a set period after completion. It also provides a vital safety net by covering unexpected costs like temporary rent or storage while repairs are underway. Rest easy knowing your investment is secure throughout the entire building process.
Eligibility & Requirements
Outline of the eligibility criteria for builders applying for DBI bonds in Victoria to ensure full compliance and rapid approval.
Solvency & Integrity
- Clean trading history with no recent insolvencies
- Demonstrated record of project delivery integrity
- Current VBA registration for applicable classes
- No outstanding ASIC or legal judgements
Financial Strength
- Two years of clean, current financial statements
- Minimum required net tangible asset (NTA) levels
- Adequate liquid working capital for project scale
- Letter of support from financial institutions
Technical Capacity
- Proven experience in relevant building categories
- Robust construction management and safety systems
- Sufficient resource capacity for requested limits
- Current insurance (Public Liability/PI) in place
Securing Your DBI Bond
01
Initial Quote Request
Submit your project details via our online portal. We focus on Melbourne-specific construction risks to ensure your preliminary assessment is accurate and ready for VMIA review.
02
Documentation Review
Our specialist brokers examine your building contract and financial statements. We ensure all paperwork meets the strict Victoria DBI compliance standards to avoid delays.
03
Eligibility & Sourcing
We leverage our established channels with the VMIA and private insurers to source the most competitive DBI certificates and eligibility limits for your business.
04
Certificate Issuance
Once approved, your DBI certificate is issued promptly, allowing you to secure building permits and commence construction without unnecessary downtime.
In the Australian general insurance space, when we talk about a "bond" or statutory insurance for domestic clients (mom-and-pop homeowners building or doing major renovations), we are talking about Domestic Building Insurance (DBI)—which in states like Victoria just underwent a massive overhaul to become the Home Warranty / First Resort Scheme.
For a domestic client, this policy is their absolute safety net against a rogue or bankrupt builder. If you are looking to explain the core benefits to a retail client or a residential building contact, the benefits break down into three distinct phases:
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1. Incomplete Work (The "Pre-Completion" Benefit)
If the builder walks away halfway through the project, the client isn't left with an unlivable, half-built concrete shell and a massive bank loan.
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The Benefit: The insurance steps in to fund the cost of hiring a new registered builder to take over the site and finish the contract.
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Financial Caps: In Victoria, under the updated rules, it covers up to $400,000 (up from the old $300,000 DBI limit).
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Deposit Protection: If the builder takes the initial 5% deposit and goes under before even turning a sod of soil, the policy covers the lost deposit.
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2. Defective Work (The "Post-Completion" Benefit)
Once the keys are handed over, the builder's liability doesn't stop. If defects appear later, the policy acts as a long-term statutory warranty that is divided into two strict timelines:
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Structural Defects (6 Years): If major foundation shifting, roof frame sagging, or critical load-bearing failures occur within 6 years of practical completion, the policy funds the structural rectification.
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Non-Structural Defects (2 Years): Covers minor faults like faulty internal plumbing, cracking plaster, or failing waterproofing for up to 2 years post-completion.
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3. Extra Expenses (Out-of-Pocket Mitigation)
When a build stalls or goes backwards due to defects, the financial pain isn't just the timber and bricks. The policy provides allowance for:
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Alternative Accommodation: Pays for the domestic client to rent a place to live if they are displaced because their home is unlivable or delayed.
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Storage & Removal Costs: Covers moving and storing their furniture while the site is stalled or being repaired.
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The Massive Shift: "Last Resort" vs. "First Resort"
As an insurance professional, this is the most critical technical nuance you need to know, because the ground has literally just shifted under the industry's feet.
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The Old Way (Last Resort): Historically, DBI was a "last resort" policy. A domestic client could only lodge a claim if the builder died, disappeared, or went legally insolvent. If the builder was alive and trading but simply doing a terrible job or refusing to return to the site, the homeowner couldn't claim—they had to spend tens of thousands on VCAT or court battles first.
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The New Way (First Resort): Under the newly introduced reforms, the scheme has shifted to a First Resort model administered by the Building and Plumbing Commission (BPC). Domestic clients can now trigger a claim much sooner even if the builder is still trading, provided the work is demonstrably incomplete, defective, or non-compliant and the builder fails or refuses to fix it after a dispute order.
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This cover automatically transfers to the next buyer if the domestic client sells the house within that 6-year window, significantly boosting the resale value and security of the asset.