Home Warranty Victoria: What Homeowners Need to Know

Home Warranty is Victoria's current mandatory insurance scheme for new eligible domestic building work.

From 1 July 2026, it replaced Domestic Building Insurance for new eligible work. The Building and Plumbing Commission (BPC) provides the new Home Warranty scheme.

Home Warranty generally applies to eligible domestic building work valued at more than $20,000 for homes and residential buildings up to three storeys, unless an exclusion applies.

The scheme is designed to provide homeowners with financial protection in certain circumstances where eligible building work is incomplete, defective or non-compliant and the builder is unable or unwilling to complete or rectify the work.

Not every building project or building issue is automatically covered. Eligibility requirements, limits, exclusions and claim timeframes apply.

For homeowners entering into a new building contract, the date of the contract matters.

Home Warranty applies to new eligible domestic building work under eligible contracts signed on or after 1 July 2026.

It generally applies where:

For eligible projects, the registered builder is responsible for arranging and paying the applicable Home Warranty premium on behalf of the building owner.

Because eligibility depends on the particular work and contract, homeowners should not assume that every renovation or repair automatically falls within the scheme.

For eligible projects, the builder is responsible for paying the applicable Home Warranty premium.

When the Building and Plumbing Commission accepts the premium, the BPC issues the building owner with a Notice of Cover.

The Notice of Cover confirms details relating to the eligible project and is an important document for the homeowner to retain with the building contract, plans, specifications, variations and payment records.

This terminology is important.

Under the previous Domestic Building Insurance system, homeowners received a Certificate of Insurance.

Under the new Home Warranty system, the relevant document is a Notice of Cover.

Brownlow Building recommends keeping your Notice of Cover and all major project documentation together throughout construction and after completion.

Home Warranty may provide assistance where eligible domestic building work is incomplete, defective or non-compliant and the builder is unable or unwilling to complete or fix the work.

Depending on the circumstances, eligibility and scheme rules, assistance may relate to matters including:

The maximum amount of assistance available under Home Warranty is currently up to $400,000 in total per home, subject to eligibility, individual limits and exclusions.

Specific limits can apply to different types of assistance. Home Warranty does not cover every building issue, and homeowners should refer to current BPC information when determining whether assistance may apply.

See what Home Warranty may cover at the BPC

Home Warranty is an insurance scheme. It sits alongside, and is separate from, the statutory warranties that apply to domestic building work under Victorian building law.

Statutory warranties are implied terms that apply to domestic building contracts regardless of whether the work is insured under Home Warranty. They provide a separate avenue of recourse against the builder for defective or incomplete work, independent of any insurance claim.

Because statutory warranties apply as a matter of law to eligible domestic building work, Brownlow Building does not offer a separate proprietary "structural warranty" or "minor defect warranty" of its own — the statutory warranties that apply to the work are those set out under Victorian building law.

If a homeowner believes work may be defective, the appropriate first step is generally to raise the concern directly with the builder. Home Warranty insurance is a separate matter that only applies in the insurable circumstances set out under the scheme.

One of the significant differences between the previous DBI scheme and Home Warranty is the circumstances in which assistance may be available.

Under the previous DBI scheme, claims were generally associated with limited circumstances such as a builder dying, disappearing or becoming insolvent.

Home Warranty may apply more broadly where eligible domestic building work is incomplete, defective or non-compliant and the builder is unable or unwilling to complete or fix the work.

Depending on the circumstances, an insurable event may also include situations such as builder insolvency, cancellation of registration or termination of the building contract because of builder default.

This does not mean every dispute or defect automatically becomes a Home Warranty claim.

In many cases, where the builder is still trading, homeowners will first need to raise the issue with the builder and give them an opportunity to respond before the BPC assesses a claim.

Check whether building insurance may apply through the BPC

Existing Domestic Building Insurance remains important.

If your building contract and insurance fall under the previous DBI scheme, your cover continues under the terms and conditions of that scheme.

Existing DBI cover does not transfer to Home Warranty simply because the new scheme commenced on 1 July 2026.

For applicable DBI projects, the homeowner's Certificate of Insurance remains an important document.

This is particularly relevant for homeowners dealing with defects, incomplete work, builder insolvency or an insurance-related building issue arising from a project insured under the previous system.

If you are unsure which scheme applies to your property, the BPC provides information and tools to help homeowners identify the relevant insurance arrangement.

For homeowners planning a substantial renovation or extension in Victoria, Home Warranty should form part of the broader pre-construction conversation where the work is eligible.

Insurance is only one part of preparing a project properly.

Before construction, homeowners should also understand:

At Brownlow Building, we believe these matters are best addressed before construction starts rather than after questions arise on site.

Whether you are planning a home renovation or a home extension, understanding which insurance arrangements apply is part of preparing properly.

Brownlow Building is a registered Victorian builder, CDB-U 100870, and a Master Builders Victoria member.

Our approach is based on understanding the project properly before construction begins.

For renovation and extension projects, that means working through the existing condition of the home, proposed scope, documentation, construction requirements and relevant project obligations in a structured way.

Where Home Warranty applies to eligible domestic building work, the applicable premium and Notice of Cover form part of that pre-construction process.

Our aim is simple: homeowners should understand what is being built, how the project will be managed and what documentation applies before work gets underway.