Building Indemnity Insurance is a form of statutory insurance designed to protect homeowners and subsequent owners in specified circumstances if a builder dies, disappears or becomes insolvent.

In South Australia, it can respond to certain financial losses where:

• Contracted building work has not been completed
• Defective building work requires rectification
• The builder cannot complete or rectify the work because an insured trigger has occurred

Claims for defective building work are generally subject to the applicable statutory and policy time limits.

When is Building Indemnity Insurance required in South Australia? #

For relevant South Australian domestic building work, Building Indemnity Insurance is generally required where:

• The work requires development approval, and
• The value of the work is $20,000 or more

The builder must arrange the insurance where required.

The relevant Certificate of Insurance must also be provided as required under the South Australian building approval process.

Building work cannot commence until the applicable Building Indemnity Insurance requirements have been satisfied.

What is the current policy limit? #

For new South Australian policies issued under the current arrangements, the prescribed policy limit is $250,000, subject to the applicable insurer and policy terms.

Defective-work claims can generally be made for up to five years after completion of the building work, subject to the statutory scheme and policy.

How does Webber Insurance assist? #

Webber Insurance assists South Australian builders with the QBE Building Indemnity Insurance process, including:

• Builder eligibility
• Job-specific certificates
• Multi-unit arrangements where applicable
• Changes to existing eligibility arrangements

QBE eligibility and individual policies remain subject to the insurer’s assessment and approval.

Building Indemnity Insurance is different from Contract Works Insurance, which addresses certain physical loss or damage to construction works during a project.

You can read more on our Building Indemnity Insurance page.