Victoria Home Warranty from 1 July 2026: $20,000 Threshold and $400,000 Maximum

According to the Building and Plumbing Commission (BPC) guidance updated 1 July 2026 (figures checked 1 October 2026), Home Warranty starts on 1 July 2026 for new eligible domestic building work under eligible contracts signed on or after that date; the work must be valued at more than $20,000, and maximum assistance is $400,000 in total per home, subject to eligibility, limits and exclusions. The applicable scheme depends on both when the building contract was signed and when the insurance cover was issued, so existing DBI cover does not transfer to Home Warranty.

Which scheme follows from the dates on my job?

Check both the contract-signing date and the insurance-cover issue date before relying on either scheme.

If the dates or documents do not line up cleanly, check with BPC and the relevant policy documents rather than choosing a scheme from the job’s current date alone.

Is the Home Warranty threshold $20,000 or more?

BPC’s wording is more than $20,000, not $20,000 or more.

Under the former DBI rules, DBI was required for domestic building work valued at more than $16,000. The change therefore needs to be matched to the correct scheme and contract dates; the former DBI threshold should not be substituted for the Home Warranty threshold.

What does the $400,000 maximum mean?

The $400,000 is the maximum assistance available under Home Warranty in total per home. It is not an automatic payment or a guaranteed amount for every claim, because eligibility, limits and exclusions still apply.

The policy’s PDS is the place to check the detailed coverage terms, limits and exclusions.

Where can Home Warranty provide broader protection?

BPC says Home Warranty may provide broader protection than DBI. It may apply where:

• eligible domestic building work is incomplete, defective or non-compliant; and
• the builder fails or refuses to complete or fix the work.

Home Warranty is also not limited to circumstances where the builder has died, disappeared or become insolvent. These are situations where protection may apply, not an assurance that every claim will be accepted.

Does existing DBI cover transfer to Home Warranty?

No. BPC states that existing DBI policies continue under their current terms and conditions. If the contract was signed before 1 July 2026 and the DBI Certificate of Insurance was issued before that date, the cover continues under DBI.

A DBI policy does not become a Home Warranty policy merely because the job or policy remains in place after 1 July 2026.

What should I check before relying on either scheme?

Keep the following information with the job records:

• the date the building contract was signed;
• the date the insurance cover was issued;
• the type of cover and any certificate number;
• the value of the domestic building work; and
• the applicable policy’s PDS.

This is general information, not financial or legal advice. Check the Building and Plumbing Commission page and the applicable policy’s PDS before making a decision.

Sources

• Building and Plumbing Commission — Domestic Building Insurance and Home Warranty

FAQ

Does Home Warranty apply to a contract signed on 1 July 2026?

It may apply. BPC’s date test covers eligible contracts signed on or after 1 July 2026, provided the work is new and eligible, valued at more than $20,000, and otherwise meets the applicable requirements.

What happens if the work is valued at exactly $20,000?

BPC states a threshold of more than $20,000, so work valued at exactly $20,000 does not meet that stated threshold. Confirm the value and eligibility with BPC.

Does an existing DBI policy become Home Warranty?

No. Existing DBI policies continue under their current terms and conditions, and DBI cover does not transfer to Home Warranty.

Is the $400,000 maximum per home?

Yes. BPC describes it as the maximum assistance available in total per home, subject to eligibility, limits and exclusions.

What if my contract and insurance-cover dates differ?

Both dates matter. Keep records of each date and check the BPC guidance and the applicable PDS rather than assuming which scheme applies.