Yes—under Victoria’s old DBI rules, registered builders and tradespeople doing domestic building work valued over $16,000 had to have DBI, and the client had to receive a copy of the policy and a certificate covering the property before any deposit or other money was paid (Consumer Affairs Victoria guidance, updated 8 April 2026). From 1 July 2026, Home Warranty may apply to new eligible domestic building work under eligible contracts signed on or after that date when the work is valued at more than $20,000 (Building and Plumbing Commission (BPC) guidance, dated 1 July 2026).
Figures checked 1 October 2026.
Does every landscaping job over $16,000 need DBI?
Not solely because the invoice is over $16,000. DBI is connected to domestic building work, so the type of work and the contract circumstances matter. The cited regulator guidance does not provide a separate landscaping-specific classification test; check the current regulator page rather than assuming every high-value landscaping job is covered.
For domestic building work subject to the old DBI rules, Consumer Affairs Victoria’s 8 April 2026 guidance sets out the following:
| Point | Old DBI position |
|---|---|
| Value threshold | More than $16,000 |
| Who must carry the insurance | Registered builders and tradespeople |
| What it protects against | Inability to finish the project or fix defects because the builder or tradesperson died, became insolvent or disappeared |
| Documents | A copy of the policy and a certificate of insurance covering the property |
| Payment timing | Both documents must be supplied before any deposit or other money is paid |
| Relationship to other rights | Additional to contractual obligations and warranties |
DBI, formerly called builders warranty insurance, provides limited cover. It does not replace the builder’s responsibility to perform the work properly or honour the contract.
What must happen before I pay a deposit?
For old-scheme DBI work valued over $16,000, the payment sequence matters:
- The builder or tradesperson must provide a copy of the DBI policy.
- They must also provide a certificate of insurance covering the property.
- Both documents must be supplied before the client pays a deposit or any other money.
Consumer Affairs Victoria separately recommends asking for a current certificate of public liability insurance. That document should not be assumed to replace the required DBI policy and certificate.
Before work starts, Consumer Affairs Victoria also advises checking with a home and contents policy insurer that renovations are covered. Extra cover may be needed.
What did DBI actually cover?
Consumer Affairs Victoria describes DBI as limited protection. Its 8 April 2026 guidance gives the following summary:
| Feature | DBI position described by Consumer Affairs Victoria |
|---|---|
| Main circumstance | The builder or tradesperson cannot finish the project or fix defects because they died, became insolvent or disappeared |
| Structural defects | Costs up to $300,000 to fix structural defects for 6 years |
| Non-structural defects | Costs up to $300,000 to fix non-structural defects for 2 years |
| Unfinished work | A claim may be limited to only 20% of the contract price |
| VCAT or court orders | A policy issued on or after 1 July 2015 also covers the builder’s failure to comply with a final order made by VCAT or a court |
These are regulator summaries, not a substitute for the policy’s PDS. Eligibility, conditions, limits and exclusions can affect what a particular policy covers.
What changed on 1 July 2026?
The BPC’s 1 July 2026 guidance says the applicable scheme depends on when the building contract was signed and when the insurance cover was issued.
| Scheme | Contract timing | Value rule | Status |
|---|---|---|---|
| Domestic Building Insurance | Domestic building work carried out under contracts signed before 1 July 2026 may fall under DBI | DBI was required for work valued over $16,000 | Existing DBI policies continue under their current terms and conditions |
| Home Warranty | New eligible domestic building work under eligible contracts signed on or after 1 July 2026 | Applies to eligible work valued at more than $20,000 | Provided by the BPC from 1 July 2026 |
If a contract was signed before 1 July 2026 and the client has a DBI Certificate of Insurance issued before that date, cover continues under the DBI policy. DBI cover does not transfer to Home Warranty.
Home Warranty may provide broader protection. It may apply where eligible work is incomplete, defective or non-compliant and the builder fails or refuses to complete or fix it. It is not limited to situations where the builder has died, disappeared or become insolvent.
The maximum assistance under Home Warranty is $400,000 in total per home, subject to eligibility, limits and exclusions.
If the contract date and insurance issue date fall on different sides of 1 July 2026, both dates matter. Do not assume that DBI has converted to Home Warranty; check the current BPC guidance for the particular contract.
Is DBI the same as the builder’s warranty obligations?
No. DBI is additional to contractual obligations, implied warranties and consumer guarantees.
- Implied warranties automatically apply to domestic building work regardless of its cost or whether a written contract exists.
- Consumer guarantees and implied warranties apply by law and cannot be signed away.
- The building contract should identify the warranty rights, whether or not it is a major domestic building contract.
- Builders and tradespeople must perform work in a proper and workmanlike manner, follow the contract’s plans and specifications, use reasonable care and skill, comply with legal requirements and complete the work within the contractual time.
- Implied warranties transfer to a new owner for up to 10 years from completion of the work.
Consumer Affairs Victoria recommends seeking legal advice where more information is needed, including for building work older than 10 years.
What should I check before signing or paying?
Before committing to the contract or paying money:
- Confirm the contract signing date and total value of the works.
- Check whether the work is domestic building work and which transition rule applies.
- For old-scheme DBI work over $16,000, obtain the policy and property certificate before any deposit or other payment.
- Ask separately for the builder’s current public liability insurance certificate.
- Check whether your home and contents policy covers the work.
- Read the relevant policy PDS and check the current Consumer Affairs Victoria and BPC pages.
This is general information, not financial or legal advice. Eligibility and cover depend on the particular work, contract and policy terms.
Sources
- Implied warranties and domestic building insurance — Consumer Affairs Victoria, updated 8 April 2026; checked 1 October 2026.
- Domestic Building Insurance and Home Warranty — Building and Plumbing Commission, dated 1 July 2026; checked 1 October 2026.
FAQ
Does every landscaping job over $16,000 need DBI?
Not simply because its price is over $16,000. The work must fall within the domestic building work rules and the applicable scheme. The cited regulator guidance does not provide a separate landscaping-specific classification test, so confirm the work type with the regulator.
Can I pay a deposit while waiting for the DBI documents?
No. Under the old DBI rule, the builder or tradesperson must provide the policy and a certificate covering the property before any deposit or other money is paid.
Does DBI convert to Home Warranty after 1 July 2026?
No. The BPC says DBI cover does not transfer to Home Warranty. Existing DBI policies continue under their current terms and conditions.
Which threshold applies to a contract signed on 1 July 2026?
Home Warranty may apply to new eligible domestic building work under an eligible contract signed on or after 1 July 2026 when the work is valued at more than $20,000.
What if the contract and insurance issue dates are on different sides of 1 July 2026?
The BPC says both dates affect the applicable scheme. Do not assume a transfer or replacement; check the regulator’s current guidance for that contract and policy.
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