VMIA Domestic Building Insurance Claim Process in Victoria

What this covers

Two schemes now sit behind Victorian domestic building work, and the claim path differs between them. Both are administered by the Building and Plumbing Commission (BPC), which replaced the Victorian Building Authority and took the domestic building insurance function over from the Victorian Managed Insurance Authority (VMIA) on 1 July 2025.

• Home Warranty covers eligible domestic building work under contracts signed on or after 1 July 2026. It is first resort and a homeowner claims by lodging a notice of claim with the BPC.
• Domestic Building Insurance (DBI) covers work under contracts signed before 1 July 2026. It is last resort. The BPC now manages every DBI policy issued by QBE on behalf of VMIA since 31 May 2010. DBI claims are lodged through the BuildVic claims portal.

The private DBI market closed on 1 July 2026, so there is no new DBI cover. This entry sets out both claim pathways, starting with Home Warranty for current work.

Home Warranty claims (contracts from 1 July 2026)

Home Warranty is first resort. A homeowner can claim where eligible work is incomplete, defective or non-compliant and the builder is unable or unwilling to complete or fix it. There is no need to wait for the builder to die, disappear or become insolvent.

When you can claim

For defective or non-compliant work, in most cases the homeowner must first give the builder a written complaint notice and allow 28 days for a response before the BPC will assess the claim. The complaint notice describes the issues and gives the builder a chance to fix them.

The complaint notice is not required where an insurable domestic building contract event has happened. That is where the builder:

• has died
• has disappeared or cannot be found
• has become insolvent, is a company in external administration or has been deregistered
• has had their registration cancelled by the BPC
• has defaulted under the contract and the contract has been validly terminated

Claim time limits

• Defective or non-compliant work: within 12 months after the homeowner first became aware, or reasonably should have become aware, of the issue.
• Incomplete work, including the cost of securing the site: within 12 months after the relevant insurable domestic building contract event.
• Accommodation, removal and storage costs: within 28 days after the costs are incurred.

Home Warranty cover lasts up to six years for major defects (structural, waterproofing or weatherproofing) and up to two years for other defects or non-compliant work, from completion of the work.

What is covered and the caps

The maximum assistance under Home Warranty is $400,000 in total per home. Inside that cap:

• incomplete work is capped at 30 per cent of the total contract price including agreed variations
• accommodation, removal and storage costs are capped at $12,000
• securing an incomplete building site is capped at $5,000
• a lost deposit where work has not started may be covered

How to lodge

Lodge a notice of claim with the BPC in the approved form and provide the domestic building contract, agreed variations, plans and specifications, payment records, photos or reports of the issue, correspondence with the builder, the Notice of Cover and a copy of any complaint notice given to the builder. The BPC assesses the claim and advises the next steps. Where the builder is still trading and the issue is defective work, a complaint notice must have been given and the 28 day period run before assessment.

DBI claims (contracts before 1 July 2026)

DBI is the legacy last-resort scheme. A homeowner can claim only where the builder cannot perform because of one of the trigger events. DBI claims are now handled by the BPC, not VMIA, and are lodged through the BuildVic claims portal.

When you can claim

A DBI policy responds to four trigger events:

• the death of the builder
• the disappearance of the builder after due search and inquiry
• the insolvency of the builder, including liquidation, voluntary administration or bankruptcy
• for Certificates of Insurance issued on or after 1 July 2015, the failure of the builder to comply with a binding VCAT order or court order

What is covered and the cap

Cover applies to non-completion of the work, limited to 20 per cent of the contract price, and to defective work. Structural defects are covered for six years and non-structural defects for two years from the occupancy permit or contract end. The total cap under one Certificate of Insurance is $300,000 for policies issued on or after 1 July 2014. Policies issued before that date carry a $200,000 cap. Cover passes to a subsequent owner during the warranty period.

Time limits

The key date is 180 days from when the homeowner first became aware of the trigger event. The BPC can refuse late lodgement. For defects, the lodgement window runs to the end of the six-year structural or two-year non-structural cover period.

Step by step

1. Confirm the trigger. For a company builder, search the ASIC insolvency notices register. For a sole trader, check the National Personal Insolvency Index. For death or disappearance, gather evidence of attempts to contact the builder and any returned mail.
2. Pull the documents. The signed contract, all variations, the schedule of progress payments, every invoice paid, the Certificate of Insurance, the occupancy permit if issued and dated site photos.
3. Lodge with the BPC. Use the BuildVic claims portal to register and lodge, uploading the documents, listing every defect or item of incomplete work and identifying the trigger event. Lodgement is free.
4. Independent assessment. The BPC appoints an independent building consultant at its own cost to inspect the property and prepare a scope of works and a defects report. Be present at the inspection.
5. Determination. The BPC issues a written determination accepting or declining each line item. For non-completion it will usually cash-settle on the cost to complete, or less commonly appoint a replacement builder. For defects it cash-settles or arranges rectification.
6. Review and complaints. If the homeowner disputes the determination, the first step is internal review. After internal review the homeowner can complain to the Australian Financial Complaints Authority.

VCAT proceedings and insurance claims

VCAT has jurisdiction over domestic building disputes under the Domestic Building Contracts Act 1995 (Vic). Once a builder is in administration, section 440D of the Corporations Act 2001 (Cth) stays VCAT proceedings against the company, so most homeowners pause the VCAT matter and run the insurance claim. Under Home Warranty a homeowner does not need a VCAT order first, because the scheme is first resort. Under DBI, if a VCAT order already exists and the Certificate of Insurance was issued on or after 1 July 2015, the builder's failure to comply with the order is itself a trigger event.

When the cap runs out

If a homeowner's loss exceeds the cap, $400,000 under Home Warranty or $300,000 under DBI, the residue is not recoverable from the scheme. Remaining options are a proof of debt with the liquidator, claims against directors under the registered practitioner regime and claims against designers, engineers and subcontractors where they hold separate registration and have breached the standard of care.

Keep a written record of every contact with the BPC. Internal review and AFCA pathways are much faster when the file is well documented.