DBI (Domestic Building Insurance)
DBI (Domestic Building Insurance) is mandatory in Victoria for work over $16,000. Protects homeowners if a builder dies, becomes insolvent, or disappears.
Ask Chalkline about this →Domestic Building Insurance (DBI) is mandatory insurance in Victoria covering residential building work valued at $16,000 or more. It is a last-resort warranty product: it protects the homeowner if, before the work is completed, the registered builder dies, is declared insolvent, or disappears. DBI also covers structural defects for six years and non-structural defects for two years after work is complete (verified 2026-05-08, VBA: Insurance requirements).
Builders must purchase DBI before requesting or receiving any payment on a qualifying project. To purchase DBI on individual projects, a builder must first obtain a Letter of Eligibility (LOE) from an approved DBI distributor. The LOE is also a hard gate for registration renewal: the Building and Plumbing Commission (BPC) will not renew a Domestic Builder registration without evidence of current DBI eligibility.
Penalties for failing to obtain required DBI are significant: fines exceeding $46,000 for individuals and up to $480,000 for companies in cases of knowing or reckless non-compliance (verified 2026-05-08, BPC: DBI for builders).
DBI in Victoria is administered by the BPC from 1 July 2025, absorbing the function previously held by the VMIA.
Also known as: Home warranty insurance (the equivalent product in other states; in NSW it is called HBCF).
Category: Insurance and licensing.
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Last updated: 2026-05-08. Verified: 2026-05-08. Quarterly review for currency.