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Owner-builder insurance in Victoria
Victoria rewrote its owner-builder rules on 1 July 2026. The certificate of consent threshold rose from $16,000 to $20,000, and the domestic building insurance you must buy before selling within six and a half years now comes through the Building and Plumbing Commission’s first-resort scheme. During the build, construction and public liability cover are yours to arrange. A licensed broker places both.
- The 1 July 2026 changes, in plain words
- Construction and liability cover for the build
- What selling within 6.5 years now requires
What an owner-builder in Victoria needs
A certificate of consent from the Building and Plumbing Commission (BPC) before domestic building work on your own land worth more than $20,000, a building permit from a registered building surveyor, licensed practitioners for the trades that require them, and your own construction and public liability insurance for the build. If you sell within six and a half years of completion, domestic building insurance for the owner-built work and a defects inspection report go with the contract.
The value of the work counts your own labour at the rate a registered builder would charge, so doing it yourself doesn’t keep you under the threshold.
The Victorian rules, before and after 1 July 2026
| Rule | What applies now |
|---|---|
| Certificate of consent | Needed for domestic building work on land you own valued at more than $20,000 (was $16,000). Valid for 12 months, or until the building permit it supports lapses. |
| Domestic building insurance when you sell | Required if you sell within 6.5 years of completion and the work was done under a certificate of consent. Bought from one of the BPC’s distributors; the BPC doesn’t sell it directly. The scheme is first-resort, with a cap of $400,000 per dwelling (previously last-resort and $300,000). |
| Defects inspection report | A report from a registered building practitioner, no more than six months old, must go to the buyer with the contract. |
| Builders you engage | A registered builder doing work over the threshold under a major domestic building contract must provide domestic building insurance to you. |
| Work without a certificate | The new scheme covers work done under a certificate of consent. Where none was obtained, no scheme cover is in place, and a certificate can’t be issued after the event to fix that. |
Consumer Affairs Victoria’s owner-builder page still shows the pre-July figures. The BPC’s pages and the Legal Practitioners’ Liability Committee’s note on the changes are the current references.
What owner-builder insurance covers, and what it doesn’t
Two policies carry the build in Victoria: construction cover for the works and public liability for everyone else. Warranty cover is a separate question that only arises when you sell.
Usually covered
- The works under construction against fire, storm, theft of materials and vandalism, from slab to lock-up.
- Injury to visitors, neighbours and passers-by, and damage to their property, under public liability.
- Voluntary workers, such as family and friends who help, under an optional extension.
- Materials in transit and on site, where the policy includes them.
Usually not covered
- Your own tradies’ work. Each licensed contractor carries their own liability and, over the state threshold, their own warranty cover.
- Employees you pay. That’s workers compensation, which is compulsory once you employ.
- Defects in your own workmanship, which no construction policy covers.
- The finished home once it’s occupied. Switch to home and contents cover at completion.
What sets the premium for an owner-builder policy
Request owner-builder cover through us
Victorian owner-builder questions
What changed for Victorian owner-builders on 1 July 2026?
The threshold for a certificate of consent, and for the warranty insurance that applies when you sell, rose from $16,000 to $20,000. The insurance moved into the Building and Plumbing Commission’s first-resort scheme, with a cap of $400,000 per dwelling, and it applies to work done under a certificate of consent.
Do I need domestic building insurance if I never sell?
No. The requirement is triggered by a sale within six and a half years of completion. If you keep the home beyond that period the obligation lapses, though the defects you’d be liable for as the builder don’t.
How much does owner-builder insurance cost in Victoria?
It depends on the contract value, the build type and duration, the liability limit and the site. We don’t publish indicative prices until our insurers’ rates are confirmed; a broker quotes from your actual figures.
Does the certificate of consent cover plumbing and electrical work?
No. Plumbing and electrical work must be done by licensed or registered practitioners, who carry their own insurance and issue compliance certificates for their work.
Is owner-builder insurance compulsory?
Construction and public liability cover isn’t required by the permit itself, but lenders usually require it before drawing down, councils and neighbours expect it, and a fire or a visitor’s injury with no cover falls on you personally. The warranty rules are separate and apply when you sell.
Does my home and contents policy cover the build?
Usually not. Most home policies exclude or restrict cover while major building work is under way, and some void the policy if the home is unoccupied during a renovation. Tell your home insurer before work starts and arrange construction cover for the works.
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Victoria