To successfully operate as a domestic builder undertaking residential construction in Victoria, you are required to have a sound knowledge of your Domestic Building Insurance legal obligations. This includes the associated process to secure DBI eligibility and how to take out DBI certificates.

Understanding the eligibility process is the first step. Once you have DBI eligibility approved, the next step is to apply to take out a DBI certificate for your project. The Victorian Managed Insurance Authority (VMIA) offers six types of certificates, each catering to a specific type of construction or renovation project. It is essential for builders to understand these different categories and choose the correct one for their project at the time of applying to take out a certificate.

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Certificate Categories and Definitions

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1. New Single Dwelling Construction (C01):

• This certificate applies to the complete construction of a new residential building, from start to finish.
• It can also cover the takeover of a project if no work has previously been done on the site.
• This certificate is also applicable to the construction of up to two units; however, if there are three or more units, please see below.

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2. New Multi-Dwelling Construction (C03):

• This certificate is used for the construction of three or more residential units at the same site, from start to completion.
• It is like the C01 certificate but specifically designed for multi-unit projects.

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3. Alterations/Additions/Renovations - Structural (C04):

• This certificate is for projects involving structural work such as decking, roof installation, fencing, retaining walls, patios, bathrooms, and kitchens (involving wet areas).
• It also includes projects like rewiring and electrical work.

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4. Swimming Pools (C05):

• This certificate is for projects specifically focused on building swimming pools and direct additions such as pool fencing.
• If a swimming pool is being built as part of a complete house construction, the C01 certificate is the appropriate choice.

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5. Refurbishment - Non-Structural (C06):

• This certificate covers non-structural works such as cabinet joinery, wardrobe fit-outs, painting, plastering, carpeting, and tiling.
• It is the counterpart to the C04 certificate, which is used for structural renovations.

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6. Other (C07):

• This category is for projects that do not fall into the other certificate types, such as landscaping. However, works in this category typically do not exceed $16,000, meaning that a certificate may not be required in many cases.

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Builders must select the appropriate insurance certificate for their project based on the scope and nature of the work. Choosing the correct category is essential for compliance with legal requirements and ensuring the safety and quality of the construction project. By understanding the specific criteria and categories, builders can navigate the process more efficiently and provide better protection for their clients.

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Next steps

To learn more about DBI, feel free to contact the BRIC team at www.bric.com.au. BRIC is an insurance brokerage specialising in builders' warranty insurance, committed to providing expert advice and tailored solutions to help clients safeguard their investments.

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The information in this article is current as at the date of first publication and has been prepared without taking into account your objectives, financial situation or needs. Any advice provided in this article is of a general nature only. Any statements concerning tax, accounting or legal matters are based solely on BRIC’s experience as an insurance broker and are not to be relied upon as accounting, tax or legal advice. Before making a decision to purchase an insurance policy, please read the relevant Product Disclosure Statement to make sure the policy is right for you.  Insurance cover is subject to policy terms and conditions, including policy limits and exclusions.

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