Published by Builda Group | S. Han Registered Domestic Builder, Victoria
If you’re planning to build a new home, renovate, or extend in Victoria, there’s an important change you should know about — and it’s good news for you.
From 1 July 2026, Victoria switches on a new First Resort Home Warranty Scheme, replacing the long-standing Domestic Building Insurance (DBI) model. It’s one of the biggest improvements to homeowner protection the state has seen in years, and it changes how and when you can get help if something goes wrong with your build.
Here’s a plain-English breakdown.
The big shift: from “last resort” to “first resort”
Under the old DBI system, your warranty insurance only kicked in as a last resort. In practice, that meant you could generally only make a claim if your builder had died, disappeared, or become insolvent. If the builder was still trading but the work was defective or unfinished, you were often left to chase rectification through a long and costly dispute process.
The new scheme flips that. The First Resort Home Warranty lets eligible homeowners claim for incomplete, defective, or non-compliant building work even while the builder is still operating — in cases where the builder is unable or unwilling to complete or fix the work. The aim is earlier intervention, clearer pathways, and far less stress when issues arise.
Who and what is covered
The scheme is administered by the new Building and Plumbing Commission (BPC) — the single regulator that now brings together building oversight, dispute resolution, and home warranty insurance under one roof.
It applies to eligible domestic building contracts valued over $20,000 for buildings of three storeys or less — which covers most new homes, renovations, extensions, and unit developments.
Cover available under the new scheme includes:
- Lost deposits
- Incomplete building work
- Defective or non-compliant building work
A few other practical improvements come with it: the maximum cover available increases from $300,000 to $400,000, the value threshold for when insurance is required rises from $16,000 to $20,000, and the allowance for temporary accommodation, moving and storage costs lifts to $12,000.
You’re covered from the moment you sign
One of the most reassuring changes: under the new scheme, you’re automatically covered the moment you enter an eligible building contract — even if your builder hasn’t yet paid the insurance premium. This removes a long-standing source of confusion about exactly when cover started, and gives you confidence that protection is in place from day one.
What this means for you
If you’re weighing up a project, this reform tilts the scales further in your favour. You’ll have stronger, earlier protection, a clearer path to getting problems fixed, and a single regulator standing behind the scheme. It’s exactly the kind of confidence every homeowner deserves when committing to one of the biggest investments of their life.
It’s worth knowing that eligibility, timing, and the type of work involved still matter — there are rules around what’s covered, when cover applies, and how claims are assessed. If you’re partway through a project, existing DBI policies taken out before 1 July 2026 remain valid under their original terms.
Where Builda Group stands
At Builda Group, this is simply how we already operate — compliant, transparent, and squarely on your side. As your registered builder, we arrange and pay the warranty premium on your behalf as part of doing the job properly, so your protection is sorted before work begins. We welcome reforms that lift standards across the industry and give our clients greater peace of mind, because quality work and looking after our clients is what we’re built on.
If you’re planning a build, renovation, or extension and want to understand how these changes apply to your project, we’re happy to walk you through it.
📞 Call us on 0450 BUILDA (284 532) ✉️ info@buildagroup.com.au 🌐 buildagroup.com.au
Want the full details? Get in touch and we’ll send you the link to the official Victorian Government information.
This article is general information only, current as at June 2026, and is not legal or financial advice. The First Resort Home Warranty Scheme is administered by the Building and Plumbing Commission (BPC). For the latest official details, visit vba.vic.gov.au or vic.gov.au. Builda Group Pty Ltd — Selcuk Han Registered Domestic Builder (DB-U 101965).