Assessment of eligibility

Before a builder can get Domestic Building Insurance (DBI), we assess their eligibility based on financial health, building history and project capability. This helps us understand the risk of projects not being completed or being defective.

What we look at

We assess each builder’s:

  • Past building performance
  • Type and number of projects proposed
  • Technical and management skills
  • Business history
  • Financial position and solvency

Financial checks may include:

  • Net tangible assets and turnover growth
  • Shareholders’ funds vs. sales
  • Profit margins
  • Interest cover and cash flow
  • Working capital
  • Return on equity and assets
  • Payment and collection cycles
  • Business structure and trading history
  • Statements of assets and liabilities
  • Trust deeds (where applicable)

We only provide DBI to legal entities of sole traders, partnerships or companies. We don’t issue DBI to corporate partnerships or trust structures.

We may review a builder’s eligibility at any time.

When an application is referred for further review

If the application raises concerns, financial or otherwise, we’ll refer it to our Builder Assessment Committee (BAC). This may happen if:

  • The entity or its directors/partners have a history of insolvency, administration or bankruptcy
  • There are unresolved legal judgments or current proceedings
  • There are disciplinary findings or previous DBI claims
  • There’s incomplete or undisclosed information
  • The financials don’t support the level of proposed domestic building work

Appeals process

If your application is referred to the BAC and you disagree with the outcome, you can:

  1. Appeal to the BAC – You’ll be notified of the initial decision within 48 hours and have 28 days to request a review.
  2. Appeal to the Chief Officer, DBI – If you’re still not satisfied, you can appeal again within 28 days. You’ll receive a decision within 14 days.

More information