If you have engaged a builder to undertake building work on your home that requires development (council) approval and is $20,000 or more in value, your builder must take out Building Indemnity Insurance (BII) on your behalf. The insurance must be taken out prior to the commencement of any physical work on your project. If you have a building contract before applying for development approval, your builder must take out BII before applying for approval. Your builder is also required to present to you, the homeowner, a copy of the insurance certificate.
Checklist
Before signing your contract, confirm that your builder is licenced in South Australia to perform the work required for your project here.
Check that you have been supplied with a copy of the certificate of insurance prior to work beginning on the project.
- Check the validity of your insurance.
- If your certificate is issued by QBE then click here and enter your address to confirm and match coverage on their Insurance Certificate Register.
- If your certificate is issued by Assetinsure then click here to confirm and match coverage on their Insurance Certificate Register.
Confirm that the builder named on your insurance matches the builder name listed on your building contract.
Reporting Breaches
If you become aware of a person building without a building work contractor’s licence or building work contractor building without BII, please report this to CBS via their website at www.cbs.sa.gov.au/contact-cbs by using the ‘Report or make a complaint about a business or product’ online form.
Last Resort Product
BII is a last resort insurance product. Last resort insurance provides cover only if the policy events are triggered being if the builder dies, disappears, or becomes insolvent.
A claim cannot be made under the BII policy if there are only delays to building works, or there is a dispute between the homeowner and builder. A last resort insurance scheme is designed to exhaust all mechanisms available outside of the insurance to assist in dispute resolution and compel the builder to complete or repair contracted works whilst solvent and trading. The BII policy is not a first line of defence.
Dispute Resolution
If you have any concerns or disputes with your builder, it is important to address these calmly with the builder in the first instance. You should make a note of the date, time and person you spoke with, and keep a copy of any correspondence with the builder.
For information on dispute resolution please click here.
What is covered by BII?
The insurance protects you from some of the losses you may suffer if your building work contractor becomes insolvent, disappears or dies. It usually costs more for a new builder to complete a part-finished project, and the policy contributes towards these costs up to the policy limit. It will also cover the cost of fixing any defects for up to 5 years from the date of completion of your project. The policy limit is the total limit of compensation available for all claims, non-completion and defects, for your project. Non-habitable structures are included if they require council approval and meet the other criteria of the insurance.
What is my policy limit? – Your policy limit will depend on your insurer and the issue date of your policy. The current policy limit in the Building Work Contractors Regulations is $250,000 for policies established on or after 10 November 2025. Some insurers began offering the $250,000 policy limit earlier. See the About BII page for information on historical limits.
Secure your property - Costs incurred from reasonably securing your property are covered by your BII policy. This includes security fencing, doors, locksmith costs and many other security measures. Contact your insurer to confirm what is covered.
What isn't covered by BII?
The insurance is intended to help you complete, or fix defects with, your building project. It may not cover all costs that you incur. The following things are not covered by the policy.
- An excess of up to $400
- Building report fees
- Legal fees
- Losses related to rent
- Interest on loan payments
How to make a BII claim
If you believe you have grounds for a BII claim, please contact your insurer via the details below.
QBE: 1300 790 723 or builderswarrantyclaims@qbe.com
Assetinsure: (02) 9251 8055 or claims@assetinsure.com.au
AB Phillips: 1300 242 136 or insurance@abphillips.com.au
