South Australia Building Indemnity Insurance: $20,000 Threshold and $250,000 Limit

From 10 November 2025, South Australian domestic building work requires building indemnity insurance (BII) when it needs council approval and costs $20,000 or more; before that date, the threshold was $12,000, according to the South Australian Government Financing Authority (SAFA) BII guidance (figures checked 1 October 2026). SAFA’s schedule records $250,000 limits for new QBE policies issued from 1 October 2025, new Assetinsure policies from 10 November 2025, and new AB Phillips policies for pools, spas and landscaping from 13 October 2025; earlier policies keep the lower limits shown below.

What building work requires BII?

A project price alone does not determine whether BII is required. The type of work and the approval requirement also matter.

SAFA says a builder must take out BII for the homeowner for each contract entered into. The SA.GOV.AU guidance, updated 19 February 2026, says contractors must arrange and pay for the insurance.

Before work starts, both of these actions must be complete:

• The builder has taken out building indemnity insurance.
• The homeowner and council have each received a copy of the certificate of insurance.

Does a $250,000 limit apply to every policy?

No. The project-value threshold and the policy limit are separate tests, and the $250,000 limit does not automatically replace the limit on a policy issued earlier.

SAFA’s What’s New update says the higher QBE limit applied only to new QBE policies issued on or after 1 October 2025. From 10 November 2025, $250,000 was prescribed in the Building Work Contractors Regulations for all new policies issued in South Australia, regardless of insurer.

The insurer-specific issue dates and limits are:

Use the row that matches the insurer, policy issue date and insured work shown on the certificate. Earlier Assetinsure and AB Phillips policies fall within $150,000 bands, while the earlier QBE periods have $150,000 and $80,000 bands. The fact that a higher-limit row now exists does not reset those earlier policies.

How do I arrange and check the cover?

A builder can seek BII eligibility through an insurance broker, which can facilitate eligibility with QBE, Assetinsure or AB Phillips. A builder can also approach Assetinsure or AB Phillips directly.

Homeowners should:

• Check that a valid certificate is in place before work starts. SAFA lists certificate registers for QBE and Assetinsure.
• Check the certificate details, including the builder’s name and licence number, insurer, issue date, description of insured work, and policy limitations or conditions.
• Keep a copy of the certificate for their records.
• Read the contract, certificate and policy PDS carefully, and ask the contractor or insurer to clarify anything they do not understand.

SAFA lists these insurer contacts:

AB Phillips certificates can be validated by contacting the insurer on 1300 242 136.

What does BII cover, and when can I claim?

The policy is issued in the homeowner’s name and covers financial losses up to its maximum policy limit if the builder dies, disappears or becomes insolvent before completion or before defective work can be rectified.

Claims for defective building work can usually be made up to five years from the date the work was completed. A homeowner who may have a claim should contact the insurer first.

Consumer and Business Services is South Australia’s building licence regulator. Check the regulator information available through the current official BII page and the policy’s PDS before relying on a threshold, limit or claim time frame. This is general information, not financial or legal advice.

Sources

• Building Indemnity Insurance | South Australian Government Financing Authority
• SA.GOV.AU - Building indemnity insurance
• What’s New | South Australian Government Financing Authority

FAQ

Does every job costing $20,000 or more need BII?

No. From 10 November 2025, the work must be domestic building work requiring council approval and costing $20,000 or more. Before that date, the threshold was $12,000 or more for building work requiring development approval.

Does a $250,000 limit apply to an older policy?

No. Check the insurer and policy issue date against SAFA’s table. Earlier policies can have a $150,000 or $80,000 limit, even though newer policies carry $250,000.

Can a homeowner insure their own building work?

No. SA.GOV.AU says BII cannot be taken out by a homeowner who is carrying out the building work themselves. A builder undertaking the work must arrange the policy.

Who should I contact about a certificate or possible claim?

Contact the insurer first. QBE and Assetinsure certificate registers are listed on SAFA’s BII page, while AB Phillips certificates can be validated on 1300 242 136.