When Does the $250,000 South Australian BII Policy Limit Apply?

According to the South Australian Government Financing Authority (SAFA), the $250,000 limit applied to new QBE Insurance (Australia) Limited policies issued on or after 1 October 2025. From 10 November 2025, the Building Work Contractors Regulations prescribed a $250,000 limit for all new policies issued in South Australia, regardless of insurer (figures checked 1 October 2026).

What is the difference between the policy limit and the BII threshold?

The $250,000 policy limit is the maximum amount specified in the policy. It is separate from the value of building work that triggers the need for BII.

For building work requiring development approval, the BII requirement threshold was $12,000 before 10 November 2025. From 10 November 2025, the threshold increased to $20,000 under the Building Work Contractors Regulations.

In practical terms:

• The threshold helps determine whether BII is required.
• The policy limit caps the financial loss covered under that policy.
• The policy is issued in the homeowner’s name.

Which policy limit applied on which date?

SAFA’s issue-date table separates QBE’s earlier change from the later statutory limit:

QBE therefore moved to $250,000 first, for policies issued on or after 1 October 2025. The general rule covering all new policies regardless of insurer began on 10 November 2025.

Does the higher limit change a policy issued earlier?

No. The higher limit applies according to the insurer and policy issue date; it does not rewrite an existing policy’s limit or terms.

SAFA states that the $250,000 QBE limit applies only to new QBE policies issued on or after 1 October 2025. The preceding QBE issue-date band remained $150,000 through 30 September 2025, while the earlier band shown in the table was $80,000.

For the statutory change, SAFA states that policies issued by insurers other than QBE before 10 November 2025 remain subject to the $150,000 limit. To identify the position for an existing policy, check its insurer, issue date and PDS rather than applying the latest limit retrospectively.

Does a $250,000 limit mean $250,000 will automatically be paid?

No. It is the maximum policy limit, not an automatic payout amount.

SAFA’s Building Indemnity Insurance guidance explains that BII covers eligible financial losses up to the maximum policy limit if the builder dies, disappears or becomes insolvent before completion of the building work or before defective work can be rectified. Claims for defective building work can be made up to five years after the work is finished.

A homeowner who may have a claim should contact their insurer first and read the policy’s PDS for the applicable terms.

How can I check which limit applies?

1. Check the insurer and policy issue date in the policy documents and certificate.
2. Compare those details with the date table.
3. If the policy was issued before the relevant change, check its existing PDS rather than assuming the later limit applies.
4. Homeowners can use the QBE and Assetinsure certificate registers listed by SAFA. AB Phillips certificates can be validated by contacting the insurer.

Listed insurer contacts are:

• QBE: 1300 790 723
• Assetinsure: (02) 9251 8055
• AB Phillips: 1300 242 136

Builders with questions should contact their registered insurance broker or insurer.

This is general information, not financial or legal advice. Consumer and Business Services is South Australia’s building licence regulator. Check its current regulator information and the policy’s PDS before relying on a particular limit.

Sources

• What’s New | South Australian Government Financing Authority
• Building Indemnity Insurance | South Australian Government Financing Authority

FAQ

Did every new South Australian BII policy have a $250,000 limit from 1 October 2025?

No. The $250,000 limit applied to new QBE policies issued on or after 1 October 2025. The prescribed limit for all new policies regardless of insurer began on 10 November 2025.

What limit applied to a QBE policy issued on 30 September 2025?

The QBE policy issued during that period had a $150,000 limit. It did not move into the $250,000 band when new QBE policies began carrying that limit on 1 October 2025.

Is the $250,000 policy limit the same as the BII threshold?

No. The maximum policy limit became $250,000 for all new policies from 10 November 2025. The separate threshold for requiring BII also increased from $12,000 to $20,000 on that date.

What should I check if I already have a policy?

Check the insurer, policy issue date, certificate and PDS. An existing policy retains its own limit and terms rather than taking a later issue-date limit automatically.