Under the Building Work Contractors Act 1995 (SA) and Regulations builders performing building work that requires development approval, and has a value of $12,000 or greater, are required to take out a building indemnity insurance (BII) policy on behalf of the homeowner for each and every contract they enter into. From 10 November 2025, this threshold will increase to $20,000 in the Regulations. Until this date, policies will continue to be required for building work with a value of $12,000 or more.
A BII policy, which is issued in the name of the homeowner, protects against financial losses, up to the maximum policy limit*, in the event the builder dies, disappears or becomes insolvent before the completion of the building work or before defective work can be rectified. Claims for defective building work can be made up to five years after the building work has been finished.
* To find the maximum limit applicable to your policy please see below or click ‘BII Policy Limits’.
Insurers Offering BII in South Australia
Since 2013, in the absence of the availability of this cover at scale in the private sector, the South Australian Government Financing Authority (SAFA), through its insurance division, has underwritten BII through reinsurance agreements with insurers operating in the private sector.
SAFA currently underwrites BII through a reinsurance arrangement with QBE Insurance (Australia) Limited (external site) (external site) (external site) (external site) (external site).
Other Private Insurers
Assetinsure Pty Ltd (external site) (external site) (external site) (external site) (external site) is a private insurer that officially launched its Domestic Building Insurance product into the South Australian market on 24 May 2023.
AB Phillips (external site) (external site) (external site) (external site) (external site) is a private insurer offering its Builders Warranty Insurance product in South Australia, which is specifically tailored to the pool, spa & landscaping sectors only.
These insurers do not form part of the BII reinsurance arrangements with the South Australian Government Financing Authority.
BII Policy Limits
| Insurer | Policy issue date | Policy limit |
|---|---|---|
| QBE | 1 July 2013 - 30 June 2017 | $80,000 |
| 1 July 2017 - 30 September 2025 | $150,000 | |
| 1 October 2025 onwards | $250,000 |
| Insurer | Policy issue date | Policy limit |
|---|---|---|
| Assetinsure | 24 May 2023 - 9 November 2025 | $150,000 |
| 10 November 2025 onwards | $250,000 |
| Insurer | Policy issue date | Policy limit |
|---|---|---|
|
AB Phillips (pools, spas and landscaping only) | 1 July 2017 - 12 October 2025 | $150,000 |
| 13 October 2025 onwards | $250,000 |
Eligibility
If you are a builder and you are seeking eligibility for BII you will need to arrange this through one of the following:
- Your insurance broker, who can facilitate eligibility with any of the three insurers in the South Australian market (QBE, Assetinsure, AB Phillips) or
- Directly with Assetinsure or AB Phillips.
Claims
If you are a homeowner and you think you may have a claim you should contact your insurer in the first instance. The contact details for the insurers are detailed below.
QBE (external site) (external site) (external site) (external site) (external site): 1300 790 723
Assetinsure (external site) (external site) (external site) (external site) (external site): (02) 9251 8055
AB Phillips: 1300 242 136
Insurance Certificate Validation
If you are a homeowner building a new home or undertaking renovations that meet the criteria for BII, you are encouraged to check that a valid certificate is in place. You can do so using the insurer certificate registers listed below.
- QBE Insurance (Australia) Limited Insurance Certificate Register (external site) (external site) (external site) (external site) (external site)
- Assetinsure online Certificate Validation (external site) (external site) (external site) (external site) (external site).
- AB Phillips certificates can be validated by contacting the insurer on 1300 242 136.
Further Information
Further information about BII can be found at bii.sa.gov.au (external site) (external site) (external site) (external site) (external site) (external site) (external site) or by contacting Consumer and Business Services (external site) (external site) (external site) (external site) (external site), the building licence regulator for South Australia.
