Building Indemnity Insurance
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How long does Building Indemnity Insurance remain in place
Last Updated: July 8, 2025In South Australia, Building Indemnity Insurance provides coverage for a period of five years from the date of practical completion of the building work. Practical completion refers to the point at which the building work is finished and ready for occupation or use. This five-year coverage applies to: The original homeowner Any future owners of the property within that five-year period Building Indemnity Insurance protects against situations where the builder has died, disappeared, or become insolvent, and there are issues such as: Incomplete building work Defective workmanship Loss of deposit This cover is considered a last-resort policy. Claims can only be made if the builder is no longer able to rectify the issue due to death, disappearance, or insolvency. If you require additional assistance, please contact our team.
How can Owner-Builders protect themselves
Last Updated: July 8, 2025Owner-builders who do not hold their own building licence generally cannot obtain Building Indemnity Insurance directly. If the value of the work exceeds $12,000, it is the responsibility of the licensed contractor completing the work to arrange Building Indemnity Insurance. This helps protect the owner-builder against potential non-completion or major defects caused by the contractor. If you are an owner-builder who holds a valid building licence and are building on land that is owned in the same name or entity as the licence, you may be eligible to apply for Building Indemnity Insurance in your own right. In this case, you will need to go through the full eligibility application process, similar to any other licensed builder. If the land is held under a different name than your building licence, you will not be treated as an owner-builder for insurance purposes and will instead be required to provide a Building Indemnity Certificate before work begins. If you do not hold a building licence, you must rely on your licensed subcontractors to obtain Building Indemnity Insurance for the work they carry out. Subcontractors working under a registered builder do not need to arrange their own cover, as this responsibility sits with...
What happens if I don’t arrange Building Indemnity Insurance for a job
Last Updated: July 8, 2025Failing to arrange Building Indemnity Insurance when it is required can lead to serious consequences for both the builder and the property owner. Possible outcomes include: Delays or refusals in obtaining development approvals Penalties or disciplinary action from your licensing authority Homeowners being left without access to compensation or legal protections if things go wrong Increased risk of disputes and potential legal action Damage to your professional reputation Loss of future work or contract opportunities Building Indemnity Insurance is a legal requirement for most residential building work valued over $12,000 in South Australia. It protects the homeowner in situations where the builder dies, disappears, or becomes insolvent, and failing to provide it puts all parties at risk. Contact our team today with any questions you might have.
What projects can be insured under Building Indemnity
Last Updated: July 8, 2025In South Australia, Building Indemnity Insurance is required for domestic building work that: Involves structural elements Requires council approval Has a contract value of $12,000 or more This requirement is outlined in the Building Work Contractors Act 1995 and applies to work carried out by licensed builders or contractors. Examples of insurable projects include: Construction, alteration, or demolition of a house Underpinning, structural repairs, or improvements to an existing home Additions or extensions Excavation or site preparation related to residential building work Swimming pools or spas located within the boundary of the house Other works carried out within the boundary (curtilage) of a residential property If the work meets these criteria, Building Indemnity Insurance must be arranged prior to commencing the job, and a certificate must be provided to both the homeowner and the council. Contact our team today for further assistance.
How do I obtain Building Indemnity Insurance for a job?
Last Updated: July 8, 2025To arrange Building Indemnity Insurance for a specific project, you will need to: Complete the relevant application form: Job-specific application for single dwellings Multi-Unit application for grouped or multi-residential projects Provide a copy of the signed building contract It is important that all details in the application match the building contract exactly, including: Names of the builder and property owner Project address Contract value These details must also align with your eligibility profile, including your licence and business registration. Applications cannot be submitted to the insurer unless all information is accurate, complete, and consistent. Contact us if you need help completing the form or confirming your eligibility status.
How long does it take to arrange eligibility?
Last Updated: July 8, 2025Once all required information has been submitted, QBE Insurance generally takes two to three weeks to review the application and issue an eligibility certificate. Timeframes may vary depending on: The complexity of your application The volume of submissions being assessed at the time Approval is at the sole discretion of QBE, and delays can occur if information is missing or inconsistent. We will keep you updated throughout the process and work with you to ensure that everything is submitted correctly, thereby avoiding unnecessary delays. Contact us today to find out how we can assist you.
I’m a new Builder, can you help me apply for eligibility?
Last Updated: July 8, 2025Yes. If you are newly licensed or starting your business, we can assist you with the Building Indemnity Insurance eligibility process. We will guide you through the application requirements, which typically include: Financial statements and business structure A business plan or cash flow forecast A summary of your building industry experience Details of planned projects or contracts Insurers are often cautious when assessing new builders, but we will work with you to ensure your application is clear, complete, and well-supported. Support for Builder’s Licence and Eligibility Applications If you are still applying for your builder’s licence or want help preparing for Building Indemnity Insurance eligibility, we recommend contacting: Sam Cottell – SA Trade LicensingSam is a former Licensing Manager for Consumer Affairs with over 12 years of experience supporting builders through licence applications and technical interview preparation. Application Options and Fees You can apply for eligibility through one of two options: 1. With support from SA Trade Licensing We assist with submitting the application to QBE Application fee: $500 + GST (non-refundable) This is in addition to SA Trade Licensing’s consulting fees 2. Directly through Webber Insurance (no external consultant) Full application support provided by our team Application fee: $1,500...
Who is required to hold Building Indemnity Insurance
Last Updated: July 8, 2025Building Indemnity Insurance can only be arranged by a licensed Building Work Contractor. It is a legal requirement for builders who are carrying out residential work that: Exceeds the relevant state threshold (e.g. $12,000 in South Australia), and Involves structural elements or requires council approval This insurance cannot be taken out by individuals undertaking the work themselves. If you are building, renovating, or extending your home as an owner-builder, Building Indemnity Insurance does not apply. If you are unsure whether your licence, project type, or contract value requires this cover, contact us for clarification before work begins.
What is Building Indemnity Insurance
Last Updated: June 19, 2025Building Indemnity Insurance, also known as Builder’s Warranty Insurance, protects the homeowner (not the builder) if: Non-completion of the Building Contract, including loss of deposit if the builder becomes insolvent, dies, or disappears. Incomplete or defective work if the builder becomes insolvent, dies, or disappears. Failure of the builder to correct faults, such as poor workmanship and unsuitable materials, but only if you cannot recover compensation from the builder or have the builder rectify the loss or damage because of the builder’s insolvency, death or disappearance. This cover ensures that the homeowner can recover some of the costs to complete unfinished work or rectify serious defects, even if the builder is no longer available to meet their obligations. It is a mandatory requirement for most residential building projects involving a licensed builder or contractor. Webber Insurance is an approved provider of Building Indemnity Insurance in South Australia. Please refer to our Building Indemnity page for details on how we can assist you.