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Home Warranty Insurance | Master Builders Insurance Brokers
Domestic Building Insurance
Providing protection for your valued customers.
Incomplete or defective works
Value of work is over $16,000
Dispute resolution process outcomes
What is Domestic Building Insurance?
Domestic Building Insurance (DBI) is a statutory product, compulsory under relevant building legislation in Victoria for builders carrying out residential building work.
Domestic Building Insurance, or Home Warranty Insurance as it is referred to nationally, covers the homeowner (and subsequent owners) where the contracted building work is incomplete or defective. The insurance responds when the builder has either died, disappeared, become insolvent or has failed to comply with a Tribunal or Court Order.
The cover lasts up to 6 years from completion of the domestic building work or termination of the domestic building contract (6 years for structural defects and 2 years for non-structural). Cover is only provided for outcomes relative to a specific dispute resolution process.
From 1 July 2017, registered Victorian builders seeking to purchase insurance from the government backed insurer VMIA (Victorian Managed Insurance Authority) must select a licensed Distributor to manage their DBI needs.
We one of only 5 brokers to have been granted a license to act as a Distributor of the VMIA.
MBIB has many years experience in dealing with the underwriters of Domestic Building Insurance in Victoria and has a designated team that are well placed to assist both new and existing builders through the eligibility and review processes.
Domestic Building Insurance is subject to legislation change at any time. For the latest updates visit our dedicated DBI website for more information.
Our Eligibility team is unique within the market.
Why do you need our specialist advice?
Here's an example:
We received a job specific application from an NSW builder that, when processed, would put them 10% above their available open job limit.
On further investigation, we determined that the insufficient available limit was more of a timing issue due to delays on current projects.
Often in the building industry jobs are delayed due to council approval timeframes blowing out or projects being almost finished but not quite at practical completion (the stage at which the builder can then close the job off).
Working with the builder, we were able to provide the Insurer with a detailed explanation of what stage each outstanding project was at. Once home warranty is obtained, it can take 4-6 weeks to get the permit from the certifier. The Insurer approved the project based on the explanation provided because they could see and understand how the new project would overlap with outstanding projects.
This positive outcome ensured that the builder was able to keep working without having a 4-week gap until their next project.
Advice from our experts:
To provide homeowners with the correct Home Warranty cover, builders should vary a job specific policy when the contract value increases.
You need to let us know if the contract value increases more than 10% for Victorian certificates from the original contract price or more than 20% for certificates issued in NSW.
Your ability to increase your Eligibility facility limits is heavily influenced by the financial strength of your business, as reflected in your financial statements.
All of our eligibility experts understand and can discuss the major financial indicators considered with you and your accountant.
There is no need to go it alone. If you need assistance completing an Eligibility application form, our eligibility experts can guide you over the phone, by email or in person at your office or ours.