Settlement and early ownership
Building problems found after settlement
Statutory building warranties, and the two different builder-insurance regimes — DBI for contracts before 1 July 2026, Home Warranty from that date — plus how a building dispute is actually resolved through the BPC.
- Statutory building warranties last 10 years from the occupancy permit or certificate of final inspection, regardless of ownership changes.
- Domestic Building Insurance (contracts before 1 July 2026) only pays out if the builder died, disappeared or became insolvent — a narrow, last-resort scheme.
- Home Warranty (eligible contracts from 1 July 2026) is a first-resort scheme covering incomplete, non-compliant or defective work as soon as it's identified.
- Home Warranty is capped at $400,000 per claim, plus up to $12,000 for accommodation, removal and storage costs during delays.
- Domestic Building Dispute Resolution Victoria (DBDRV) is now part of the Building and Plumbing Commission (BPC) — the current single entry point for a dispute.
Every state runs its own scheme
Victoria's Home Warranty scheme (below) has a direct equivalent in every other state under a different name, though the cover amounts and structures genuinely differ.
| State/territory | Scheme |
|---|---|
| New South Wales | Home Building Compensation Fund (HBCF) — covers up to $340,000; major defects for 6 years, other losses for 2; certificate of insurance required before any payment or work starts (State Insurance Regulatory Authority (SIRA) NSW, verified 12 Aug 2026) |
| Queensland | Home Warranty Scheme — compulsory for work over $3,300, pays up to $200,000, runs for 6 years and 6 months from the earliest of contract date, premium payment or work starting (Queensland Building and Construction Commission, verified 12 Aug 2026) |
| Western Australia | Home indemnity insurance — get the certificate before paying any deposit; don't accept a promise it's "on its way" (Consumer Protection WA (Government of Western Australia), verified 12 Aug 2026) |
| South Australia | Building indemnity insurance — required for work needing council approval that costs $20,000 or more (Government of South Australia (Attorney-General's Department), verified 12 Aug 2026) |
| Tasmania | Builders themselves must carry $5 million public liability plus Contract Works insurance to be licensed at all (Consumer, Building and Occupational Services (CBOS) Tasmania, verified 12 Aug 2026) |
| Northern Territory | Residential building cover (fidelity fund certificate) required for new homes and units up to 3 storeys (Northern Territory Government, verified 12 Aug 2026) |
| ACT | Residential building work insurance — cover increased from $85,000 to $200,000 from 1 January 2025; only 2 providers currently offer it (QBE Insurance, or the Master Builders Fidelity Fund); last-resort model, claim window starts once you learn the builder died, disappeared or became insolvent (ACT Government (City and Environment Directorate, Planning), verified 12 Aug 2026) |
Statutory building warranties
Statutory building warranties set the standard of workmanship for domestic building work and apply for up to 10 years from the date the occupancy permit or certificate of final inspection was issued — even if the property has since been sold to you, not the original owner (Consumer Affairs Victoria, verified 31 Jul 2026). This matters for an established home as much as a new build: a defect in work done several years ago on a house you're now buying can still be within warranty.
Two different insurance regimes, depending on the contract date
Which insurance scheme actually applies depends on when the building contract was signed, and the two work very differently.
Contracts signed before 1 July 2026: Domestic Building Insurance (DBI)
Under the earlier Domestic Building Insurance scheme, cover can only be claimed in narrow, "last resort" circumstances — generally where the builder has died, disappeared or become insolvent. It applies to work worth more than $16,000, and cover lasts 6 years (Consumer Affairs Victoria, verified 31 Jul 2026). If the property's relevant building work was contracted before 1 July 2026, this is the regime that applies, and existing DBI policies continue under their original terms — they don't convert to the new scheme.
Eligible contracts signed from 1 July 2026: Home Warranty
From 1 July 2026, Victoria's Home Warranty scheme applies to eligible domestic building contracts signed on or after that date, generally for building work valued over $20,000. Unlike DBI's last-resort model, Home Warranty is a "first resort" scheme — cover can be claimed once a building issue is first identified, including incomplete, non-compliant or defective work, without waiting for the builder to die, disappear or become insolvent (Victorian Government (vic.gov.au), verified 7 Aug 2026). It provides broader, earlier protection than DBI, administered by Victoria's Building and Plumbing Commission (BPC). Cover is capped at $400,000 per claim — increased from an earlier proposed $300,000 — and separately covers up to $12,000 (increased from $10,000) in accommodation, removal and storage costs where a delay is caused by incomplete, defective or non-compliant work.
If you're buying a property with recent or in-progress building work, confirm the building contract date with your conveyancer before assuming which regime — and which insurer — actually applies.
Making a claim or raising a dispute
If you find a problem you believe is covered:
- Document the issue with photographs and dates before anything changes.
- Contact the builder directly first — your council can help identify who they are if you don't already know.
- Notify the relevant insurer (DBI or Home Warranty, depending on the contract date) if the builder disputes the issue or won't act.
- Raise a formal dispute if it's still unresolved: Domestic Building Dispute Resolution Victoria (DBDRV) is now part of the Building and Plumbing Commission (BPC), which is the current single entry point for a domestic building dispute — free conciliation generally has to be tried before an application to VCAT (Consumer Affairs Victoria, verified 1 Aug 2026).
- Get technical or legal advice for anything involving safety, a large repair cost, or an insurer or builder that disputes liability.
Worked example
Three years after settlement, an owner notices water pooling against a retaining wall built as part of the original construction seven years earlier — under a contract signed well before 1 July 2026. Because it's within the 10-year statutory warranty period for domestic building work, they contact the original builder directly rather than assuming it's solely their own problem to fix, and confirm which DBI policy (not Home Warranty, given the contract date) might apply if the builder can't be reached.
Practical checklist
If you find a building problem after settlement
- Document the issue with photographs and dates
- Check whether the work falls within the 10-year statutory warranty period
- Confirm the original building contract date to know which insurance regime applies
- Contact the builder directly first
- If unresolved, raise it with the Building and Plumbing Commission (BPC)
Questions for a professional
- Does this issue fall within the statutory warranty period, and who was the builder?
- Was the relevant building work contracted before or after 1 July 2026, and which insurance scheme actually applies?
Official resources
- Consumer Affairs Victoria: Building problems after property settlement
- vic.gov.au: Better domestic building insurance (Home Warranty)
- SIRA NSW: Home building compensation for homeowners
- QBCC: Queensland Home Warranty Scheme
- Consumer Protection WA: hiring tradespeople
- ACT Government: Residential building work insurance
Sources and methodology
- Building problems after property settlement — Consumer Affairs Victoria (retrieved 31 Jul 2026)
- Apply to Domestic Building Dispute Resolution Victoria (DBDRV) — Consumer Affairs Victoria (retrieved 1 Aug 2026)
- Victoria's First Resort Home Warranty Scheme — Victorian Government (vic.gov.au) (retrieved 1 Aug 2026)
- Home building compensation - For homeowners — State Insurance Regulatory Authority (SIRA) NSW (retrieved 12 Aug 2026)
- What is home warranty insurance — Queensland Building and Construction Commission (retrieved 12 Aug 2026)
- Hiring tradespeople — Consumer Protection WA (Government of Western Australia) (retrieved 12 Aug 2026)
- SA.GOV.AU - Choosing a builder — Government of South Australia (Attorney-General's Department) (retrieved 12 Aug 2026)
- Builder licence — Consumer, Building and Occupational Services (CBOS) Tasmania (retrieved 12 Aug 2026)
- Residential building insurance — Northern Territory Government (retrieved 12 Aug 2026)
- Residential building work insurance — ACT Government (City and Environment Directorate, Planning) (retrieved 12 Aug 2026)
Figures on this page are drawn from Delora's local knowledge graph, refreshed from these primary sources and checked for changes on a regular schedule. If a figure here looks out of date, the official source above is always the authority — please let us know.