The short answer
Most states make builders hold insurance for larger jobs. The thresholds are $20,000 in Victoria, NSW, WA and SA, and $3,300 in Queensland. Ask for the certificate before you pay a deposit.
General information summarised from government pages, not legal advice. We have not covered Tasmania, the ACT or the Northern Territory here.
Confidence: likely. These facts come from official pages that we found by search and did not read in full. Check the linked source before you rely on a figure.
Insurance by state
Each state has its own scheme and name.
- VictoriaHome Warranty applies from 1 July 2026 to eligible work over $20,000, with up to $400,000 total assistance per home.
- New South WalesHome building compensation for residential work over $20,000 including GST. Warranties of 6 years for major defects and 2 years for other defects.
- QueenslandHome Warranty for most residential work valued over $3,300. General maximum cover of $200,000 per category of loss.
- Western AustraliaHome indemnity insurance for permit work over $20,000, with deposit cover up to $40,000 and defective work cover up to $200,000.
- South AustraliaBuilding indemnity insurance for work of $20,000 or more needing development approval, with a $250,000 limit on new policies.
Before you pay a deposit
Ask your builder for the insurance certificate and check it with the scheme or your regulator. Do not pay a deposit until you have seen it.
Common questions
Do I need to check my builder's insurance?
Yes. Ask for the certificate before you pay a deposit.
Sources
- Building and Plumbing Commission: Home Warranty, checked 11 November 2026
- SIRA: home building compensation, checked 11 November 2026
- QBCC: what is the Queensland Home Warranty Scheme, checked 11 November 2026
- Building and Energy: home indemnity insurance, checked 11 November 2026
- SA.GOV.AU: building indemnity insurance, checked 11 November 2026