The short answer
In South Australia, building indemnity insurance is required for domestic building work valued at $20,000 or more that needs development approval. The threshold rose from $12,000 on 10 November 2025, and new policies have a limit of $250,000.
South Australia only. Summarised from SA Government pages. Some older pages still show $12,000, so check the current page.
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.
Who holds the policy
Only a licensed builder can take out building indemnity insurance. Owner builders cannot get it for their own work.
When work can start
Building work cannot start until the builder has the insurance and both the owner and the council have a copy of the certificate.
What it protects
The policy protects the owner if the builder dies, disappears or becomes insolvent. Claims for defective work can generally be made up to five years after completion.
Common questions
What is the SA building indemnity insurance threshold?
$20,000 or more, from 10 November 2025. It was $12,000 before.
Sources
- SA.GOV.AU: building indemnity insurance, checked 11 November 2026