Domestic Building Insurance (DBI) is currently mandated for all residential building work over $20,000.
It is an offence for builders not to have DBI when required, with penalties up to $96,000 for an individual or $480,000 for a company.
Under the current DBI policy, the homeowner is covered for up to $300,000 if their builder dies, disappears or becomes insolvent.
Under the new legislation, DBI is being expanded to include all builders, not just those who become insolvent.
Expanded or first resort domestic building insurance will save consumers time and money by avoiding costly and time-consuming legal action.
We’ll provide further updates once the new DBI scheme is in effect and advise how it applies to building projects.