Better protections for homeowners start today

In its first 12 months of operation, the BPC has used its enforcement powers more often and more strategically to hold bad builders to account but now it can also play a much greater role in getting buildings fixed.

Better insurance cover for homeowners

Home Warranty is a new improved insurance scheme builders must purchase on behalf of homeowners for domestic building projects up to 3 storeys and valued at more than $20,000.

The new scheme replaces Domestic Building Insurance (DBI) providing much greater protection for homeowners when something goes wrong.

Home Warranty covers homeowners for major defects, non-compliant or incomplete work in cases where the builder is unable or unwilling to complete or fix the work.

It applies to new eligible domestic building work in Victoria, from today.  All existing DBI policies taken out before 1 July remain valid under the previous DBI scheme.

More support for homeowners after they move in

To complement the new insurance model, the BPC now has a new rectification order power that allows it to act against a builder after the homeowner has moved in, when problems are most often discovered.

If a builder is unwilling or unable to comply with the rectification order, the BPC has the power to suspend them immediately and the homeowner can make a claim under Home Warranty.

More regulatory oversight of new apartments

The BPC will now also have better oversight of residential apartment buildings with a new notification power requiring builders to notify the BPC 6 months before an occupancy permit is due to be issued.

Commissioner and CEO Anna Cronin says the BPC has achieved a lot in its first year and is now in the next exciting phase of its evolution.

“Our new powers and functions are a game changer for consumers and a strong incentive for builders to get it right the first time," she said.

"We know most builders do the right thing and we’re here to support them.”