Building Indemnity Insurance

Webber Insurance is a QBE Approved distributor for Building Indemnity Insurance.

Building Indemnity Insurance

It’s your building business, protect it.

Building Indemnity Insurance is a statutory required insurance product which is required in most states for building work contractors carrying out domestic building contracts.

This product is also known as Builders Warranty Insurance, Home Warranty Insurance, Domestic Building Insurance or DBI and has varying Insurance requirements state to state.

In South Australia, Webber Insurance is a QBE approved distributor for Builders Indemnity Insurance. Any domestic building work over $12,000 that requires council approval will need Building Indemnity Insurance.

Further details from the SA Government can be found here.

Premium increases to Building Indemnity Insurance in South Australia

As of 2 November 2020, QBE’s Building Indemnity insurance premiums will be increasing in South Australia.

This is the result of a review by the The South Australian Finance Authority (SAFA) in light of increased claims costs. Premiums will increase for:

  • All builders who pay variable premium rates
  • All builders who pay flat rate premium rates
  • All multi-unit project developments

For further information on these changes, please contact us.

Who can take out Builders Warranty Insurance?

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.

What does Building Indemnity Insurance cover?

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 builders becomes insolvent, dies or disappears on the job; and
  • Failure of the builder to correct faults which are the builders 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.

Recent changes have increased the policy indemnity limit from $80,000 to $150,000 for policies issued on or after 1 July 2017.

When is Building Indemnity Insurance needed?

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

How do I apply for Building Indemnity Insurance?

To apply for Building Indemnity Insurance, you need to complete the Builders Warranty Eligibility Application. The cost of the application is $150 + GST.

Further to the application, QBE requires:

  • Statement of Personal Assets & Liabilities
  • Copy of Builders License (if available)
  • Rates notices for owned property
  • Most recent Tax Returns or Accountant prepared Financials

Once this has been sent off to QBE, please allow a minimum of 14 days for a response.

For assistance with your application, please contact Sam Cottell from SA Trade Licensing.

Sam is a previous Licensing Manager for Consumer Affairs and has over 12 years experience in providing builders the following services:

  • Creating and submitting all licensing Government paperwork on your behalf
  • Providing specific technical interview preparation materials to study which is the only available service in SA of its kind
  • Realistic licensing advice, support and a tailored approach for the construction industry.

What to do if your Broker can no longer assist with Building Indemnity Insurance?

Webber Insurance is able to assist either with you as the client directly or via your existing broker through a wholesaling arrangement.

To allow us to act on your behalf, you will need to sign and return a copy of the Letter of Appointment to [email protected]

If you are a broker who needs assistance with wholesaling this product, please email us to set up an agency agreement.

QBE Building Indemnity Insurance application

To apply for Building Indemnity Insurance, download the eligibility application and letter of appointment below. Once completed, please return to [email protected].

Please note: If you have already submitted a Building Indemnity insurance application and/or currently hold eligibility, we cannot lodge a new application on your behalf. Please contact us for further information.

What Our Building Contractors Say About Us

Webber Insurance Services have provided a great service and are easy to deal with. Insurance renewal is a breeze and competitively priced.- Dianne Bayley

More Information

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

Insurance advice you can trust