Home Warranty

Home Warranty is a mandatory insurance scheme for eligible domestic building work in Victoria.

It starts on 1 July 2026 and applies to new eligible domestic building work under contracts signed on or after that date.

Home Warranty replaces Domestic Building Insurance for new eligible work. Existing Domestic Building Insurance policies continue under the DBI scheme.

At a glance

Home Warranty:

• starts on 1 July 2026
• applies to new eligible domestic building work in Victoria
• applies to eligible projects valued at more than $20,000
• may provide assistance if eligible work is incomplete, defective or non-compliant
• may provide up to $400,000 in total assistance per home, subject to eligibility, limits and exclusions
• does not replace existing Domestic Building Insurance policies.

How Home Warranty relates to Domestic Building Insurance

From 1 July 2026, Home Warranty replaces Domestic Building Insurance (DBI) for new eligible domestic building work.

Home Warranty applies to eligible domestic building contracts signed on or after 1 July 2026.

If your building work is already covered by Domestic Building Insurance, your cover continues under the DBI scheme. It does not transfer to Home Warranty.

From 1 July 2026, BPC provides Home Warranty for new eligible domestic building work. Existing DBI policies remain in place and continue to be supported under their current terms and conditions.

When Home Warranty applies

Home Warranty may apply to eligible domestic building work valued at more than $20,000.

This may include:

• repairs, alterations or extensions to a home
• construction of a new home
• residential buildings up to three storeys that contain more than 2 homes
• domestic building work related to swimming pools.

Some exclusions apply. For example, Home Warranty does not apply to residential buildings that are more than three storeys and contain more than 2 homes.

Home Warranty does not protect homeowners who use an unregistered builder for work that must be done by a registered builder. This can leave you unprotected if something goes wrong.

When cover starts

For eligible work, Home Warranty cover starts from the earliest of when the builder:

• pays the applicable Home Warranty premium
• starts carrying out the building work
• signs the major domestic building contract.

The registered builder must pay the Home Warranty premium before the earlier of:

• 10 business days after the building contract is signed
• the eligible domestic building work starting.

What Home Warranty may help with

Home Warranty may provide assistance where eligible domestic building work is:

• incomplete
• defective
• non-compliant.

Assistance may also be available for some related costs, including:

• lost deposits where work has not started
• accommodation, removal and storage costs
• costs to secure an incomplete building site.

Assistance is subject to eligibility, claim assessment, limits and exclusions.

How long cover lasts

Home Warranty may cover major defects for up to 6 years after the eligible domestic building work is completed.

Other defects or non-compliant work may be covered for up to 2 years after the eligible domestic building work is completed.

Home Warranty does not cover minor cosmetic differences between the completed work and the plans and specifications in your building contract.

Before you sign a building contract

Before signing a building contract, check:

• your builder is registered to carry out the work
• whether the work is eligible for Home Warranty
• when the Home Warranty premium will be paid
• when you will receive your Notice of Cover
• what documents you need to keep.

Keep copies of your:

• building contract
• plans and specifications
• permits
• invoices and payment records
• insurance documents
• Notice of Cover
• emails, letters and messages with your builder.

If you think there is a problem

If you think there is a problem with your building work, act early.

In most cases, you should first try to resolve the issue with your builder. Keep records of what happened, including photos, reports and communication with your builder.

If your builder is unable or unwilling to complete or fix eligible work, you may be able to make a Home Warranty claim.