Building Indemnity Insurance, provided in South Australia by AssetInsure and QBE, is a statutorily required insurance product in most states for building contractors carrying out domestic building contracts.

This product is also called Home Warranty Insurance, Builders Warranty Insurance, Domestic Building Insurance, or DBI, with insurance criteria differing from state to state.

In South Australia, Webber Insurance is a sanctioned provider of Builders Indemnity Insurance, collaborating with both QBE and AssetInsure. Any domestic construction projects valued over $12,000 that mandate council approval will necessitate Building Indemnity Insurance.

You can gather more information from the South Australian Government via this link.

Building Indemnity Insurance can only be taken out only by a Building Work Contractor that holds a Builders License.

This insurance cover cannot be taken out if you are undertaking the works yourself, even if you are building a house, performing renovations or building an extension.

Building Indemnity Insurance protects the home owner (and subsequent home owners) from:

• Non-completion of the Building Contract, including loss of deposit
• Incomplete or defective building work if the builder becomes insolvent, dies or disappears on the job; and
• Failure of the builder to correct faults which are the builder’s responsibility by law, such as poor workmanship and the use of inappropriate or unsuitable materials.

Claims can usually only be made on this policy up to 5 years from the practical completion of the work.

The insurance policy may necessitate the insurer compensating either the total liability limit (capped at $150,000) or the cost of the contractual work that needs finishing (if the amount is lower than the liability limit).

As a building contractor, you are responsible for making sure that this insurance is in place. Building work cannot start until all of the following has been completed:

• Building Indemnity Insurance has been taken out by the building contractor
• The building owner has received a copy of the certificate of insurance
• The council has received a copy of the certificate of insurance

Assetinsure is able to assist builders either with new eligibility or to transfer eligibility from QBE. In both instances, a new Assetinsure eligibility application form will need to be completed and returned to us to commence the process. You can download the form here.

To assist you with your application form, Webber Insurance charges $495 + GST, which is payable prior to submission to the insurer of the Eligibility Application Form. This is a non-refundable payment to cover the administration cost of submitting your application to AssetInsure.

Please note that AssetInsure will also charge their own admin fees on top of our application fee for the following transactions, upon approval:

• New applications – either new builders or builders currently insured with QBE obtaining a new indemnity certificate
• 12-month renewal reviews
• Each certificate per job
• Mid-year amendments

Assetinsure’s fee varies depending on each builder’s size. We will confirm any fees to be payable prior to the commencement of any submission to Assetinsure on your behalf.

For more information regarding Building Indemnity Insurance, please contact us on 1300 932 237 or email [email protected].