Figures checked 1 October 2026. The Building and Plumbing Commission (BPC) guidance dated 1 July 2026 says Home Warranty applies from 1 July 2026 to new eligible domestic building work valued at more than $20,000 under eligible contracts signed on or after that date. The same BPC guidance says DBI was required for work valued over $16,000, may apply to contracts signed before 1 July 2026, and continues under existing policies; where a DBI Certificate of Insurance was issued before that date, cover continues under the DBI policy, but it does not transfer to Home Warranty.
What decides whether DBI or Home Warranty applies?
The BPC says the applicable scheme depends on both when the building contract was signed and when the insurance cover was issued.
| Contract and cover record | Position under the BPC guidance |
|---|---|
| An eligible contract signed on or after 1 July 2026 | Home Warranty may apply to new eligible domestic building work valued at more than $20,000. |
| A contract signed before 1 July 2026 | DBI may apply to the domestic building work. |
| A contract signed before 1 July 2026 and a DBI Certificate of Insurance issued before that date | Cover continues under the DBI policy. |
| An existing DBI policy | The policy continues under its current terms and conditions. DBI cover does not transfer to Home Warranty. |
An eligible contract signed exactly on 1 July 2026 falls within the “on or after” date range for Home Warranty. Eligibility of the contract and work, including the applicable value threshold, still needs to be checked.
How do the value thresholds and protection amounts compare?
The work-value threshold determines which scheme may apply. The protection amount is a separate limit and should not be read as an automatic entitlement.
| Scheme | Work-value rule | Protection described by the BPC |
|---|---|---|
| DBI | DBI was required for domestic building work valued over $16,000. | For homes up to three storeys, DBI has generally provided cover of up to $300,000 for loss suffered because the builder died, disappeared or became insolvent. |
| Home Warranty | Home Warranty applies to eligible domestic building work valued at more than $20,000. | The maximum assistance available is $400,000 in total per home, subject to eligibility, limits and exclusions. |
DBI’s protection described here is tied to the builder dying, disappearing or becoming insolvent. Home Warranty has a different maximum-assistance figure and may respond to a broader range of building problems.
How is Home Warranty different from DBI?
Home Warranty may provide broader protection than DBI. It may apply where eligible domestic building work is:
- incomplete, defective or non-compliant; and
- not completed or fixed because the builder fails or refuses to complete or fix the work.
Home Warranty is not limited to circumstances where the builder has died, disappeared or become insolvent. That does not mean every defect or incomplete job is covered: eligibility, limits and exclusions still apply.
What records and policy terms should you check?
Before relying on either scheme, check:
- the date the building contract was signed;
- whether a DBI Certificate of Insurance was issued, and its issue date;
- whether the work is new and eligible domestic building work;
- the stated value of the work; and
- the DBI policy’s PDS, including its current terms, conditions, limits and exclusions.
This is general information, not financial or legal advice. Check the BPC regulator page and the relevant policy’s PDS for the current position.
Sources
FAQ
What applies to an eligible contract signed on 1 July 2026?
Home Warranty may apply because eligible contracts signed on or after 1 July 2026 fall within its date range. The work must also be new, eligible domestic building work valued at more than $20,000.
Does an existing DBI policy stop when Home Warranty starts?
No. Existing DBI policies continue under their current terms and conditions. If the contract was signed and the DBI Certificate of Insurance was issued before 1 July 2026, the cover continues under DBI.
Does DBI cover transfer to Home Warranty?
No. DBI cover does not transfer to Home Warranty. For an eligible contract signed on or after 1 July 2026, Home Warranty may apply instead, subject to the relevant eligibility requirements.
How much assistance can Home Warranty provide?
The maximum assistance available under Home Warranty is $400,000 in total per home, subject to eligibility, limits and exclusions. This is a maximum, not a guarantee that every eligible loss will receive that amount.
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