Does Victoria's Home Warranty Cover New Domestic Work Over $20,000 From 1 July 2026?

Figures checked 1 October 2026.

Yes, subject to eligibility: the Building and Plumbing Commission (BPC) says on its Domestic Building Insurance and Home Warranty page, updated 1 July 2026, that Home Warranty applies from 1 July 2026 to new eligible domestic building work valued at more than $20,000 under an eligible contract signed on or after that date.

The same guidance says Home Warranty may provide broader protection than Domestic Building Insurance (DBI), with maximum assistance of $400,000 in total per home, subject to eligibility, limits and exclusions. DBI has generally provided up to $300,000 for homes up to three storeys where loss results from a builder’s death, disappearance or insolvency.

When does the more-than-$20,000 Home Warranty rule apply?

The work, its value and the contract timing must all meet the relevant conditions.

A value above $20,000 does not by itself establish eligibility. The contract date, issue of the insurance cover and the work’s eligibility all matter.

How does Home Warranty differ from DBI?

Home Warranty is intended to provide broader protection, but the schemes have different triggers and financial limits.

Home Warranty is therefore not restricted to situations where the builder has died, disappeared or become insolvent. Its broader scope may address incomplete, defective or non-compliant work when the builder fails or refuses to complete or fix it.

What happens to DBI cover that was already issued?

Existing DBI cover does not automatically become Home Warranty cover.

• Existing DBI policies continue under their current terms and conditions.
• If the contract was signed before 1 July 2026 and the DBI Certificate of Insurance was issued before that date, cover continues under DBI.
• DBI cover does not transfer to Home Warranty.

This means the transition does not replace an existing DBI policy or require its cover to be moved into Home Warranty.

How do I check which scheme applies?

Check the following documents and dates:

• Building contract: Confirm when it was signed.
• Insurance cover: Check when the cover or Certificate of Insurance was issued.
• Scheme rules: DBI may apply under a contract signed before 1 July 2026; Home Warranty may apply under an eligible contract signed on or after that date.
• Policy terms: Read the relevant PDS, particularly for existing DBI cover, and check the current BPC regulator page.

This is general information, not financial or legal advice. Confirm the current position on the BPC regulator page and check the policy’s PDS before relying on a particular policy.

Sources

• Domestic Building Insurance and Home Warranty | Building and Plumbing Commission

FAQ

Does Home Warranty cover work valued at exactly $20,000?

No. The BPC states that Home Warranty applies to eligible domestic building work valued at more than $20,000.

Does Home Warranty apply to a contract signed before 1 July 2026?

Home Warranty may apply where an eligible contract is signed on or after 1 July 2026. DBI may apply to work under an earlier contract, and the scheme also depends on when the insurance cover was issued.

Does existing DBI cover transfer to Home Warranty?

No. Existing DBI policies continue under their current terms and conditions, and DBI cover does not transfer to Home Warranty.

Is the $400,000 Home Warranty amount an automatic entitlement?

No. It is the maximum assistance available in total per home and remains subject to eligibility, limits and exclusions.

Is Home Warranty limited to death, disappearance or insolvency?

No. Home Warranty is not limited to those situations and may apply where eligible work is incomplete, defective or non-compliant and the builder fails or refuses to complete or fix it.