Doc Summary
Building Indemnity Insurance is statutory protection for homeowners and eligible future owners.
In South Australia, it can respond to certain financial losses where eligible domestic building work is incomplete or defective and the builder:
- Dies
- Disappears
- Becomes insolvent
It is arranged by the building contractor for the benefit of the homeowner rather than to insure the builder’s own business.
When is it required in South Australia? #
Building Indemnity Insurance is generally required for domestic building work that:
- Requires development approval
- Has a value of $20,000 or more
The required insurance must be arranged before the building work commences.
The homeowner and relevant authority must also receive the required Certificate of Insurance.
What is the current policy limit? #
For new South Australian Building Indemnity policies, the current prescribed limit is $250,000, subject to the applicable policy terms.
Earlier policies can have different limits depending on when they were issued.
Building Indemnity Insurance should not be confused with:
These policies address different risks.
You can read more on our Building Indemnity Insurance page.
Contact our team before commencing eligible South Australian domestic building work.
