The VMIA has announced premium changes effective 1 September 2023.
Following a review of the sufficiency of DBI premiums, the VMIA has decided to increase premiums across all DBI policy types by 43%.
What is changing?
Premiums for all domestic building insurance (DBI) policies will increase by 43% from 1 September 2023.
Why are premiums increasing?
There has been a significant increase in costs arising from the VMIA’s growing claims exposure to large builder insolvencies in the past year, as well as the impact of recent high inflation rates and expectations of continuing inflationary pressure. The increase is necessary to ensure the stability of the DBI portfolio.
When does the change come into effect?
The new premium rate will apply from 1 September 2023.
How can you calculate your premium?
Builders can continue to check current premium pricing through the BuildVic portal. For the revised premium that will apply from 1 September 2023, builders should consult Master Builders Insurance Brokers.
Will there be a grace period for the changeover to the new rates?
No, the new rates will apply for policies paid for and issued on or after 1 September 2023.
What happens to certificates in a builder’s BuildVic cart that haven’t been purchased?
Certificates in a BuildVic cart that are not purchased before 5pm on 31 August 2023 will be withdrawn. Any referred certificates will be assessed by the Builder Assessment Team by Thursday, 24 August 2023.
What if a certificate is purchased on or before 31 August 2023 but an amendment is required on or after 1 September 2023?
VMIA may apply the new premium rate to any request for an amendment on or after 1 September 2023.
Will premiums rise again?
VMIA continually monitors market circumstances and emerging trends, and reviews premiums annually.
What do you need to do?
To facilitate a smooth transition to the new rates, any COI applications for certificates that you wish to have processed under the existing rates must be received and quoted by Monday 21 August 2023 with payment to be received prior to Wednesday 23 August 2023.
If you are unable to submit your application to us by this date, you may be charged the new rates.
For more information, talk to our specialist team.