How Does Victoria's $400,000 Home Warranty Differ From DBI?

In guidance updated 1 July 2026 (figures checked 1 October 2026), the Building and Plumbing Commission (BPC) says Home Warranty applies to eligible domestic building work valued at more than $20,000 under eligible contracts signed on or after 1 July 2026, with maximum assistance of $400,000 in total per home, subject to eligibility, limits and exclusions. Under the same BPC guidance, DBI was required for work valued over $16,000, may apply under contracts signed before 1 July 2026, and generally provided up to $300,000 for homes up to three storeys where loss resulted from the builder dying, disappearing or becoming insolvent.

What are the main differences?

The value threshold, timing and maximum assistance differ between the schemes:

The value thresholds determine which scheme may apply; they are not the maximum amount available. Likewise, the $400,000 figure is a maximum subject to eligibility, limits and exclusions, not an automatic entitlement for every home or failure.

What kinds of failures can Home Warranty address?

Home Warranty may provide broader protection than DBI. It is not limited to circumstances in which the builder has died, disappeared or become insolvent.

The BPC says Home Warranty may apply where:

• the domestic building work is incomplete, defective or non-compliant;
• the builder has failed or refused to complete or fix the work; and
• the work and contract meet the scheme’s eligibility requirements.

The published DBI figure is tied to loss suffered because the builder died, disappeared or became insolvent. For homes up to three storeys, that cover was generally up to $300,000.

Which dates determine the applicable scheme?

The BPC says the applicable scheme depends on both:

• the date the building contract was signed; and
• the date the insurance cover was issued.

An eligible contract signed on or after 1 July 2026 may fall within Home Warranty if the work meets the relevant eligibility and value requirements. DBI may apply to work carried out under a contract signed before 1 July 2026.

The transition does not depend only on whether building work is continuing in 2026. The contract and insurance-cover dates remain important.

Does existing DBI cover continue?

Existing DBI policies continue under their current terms and conditions. If a contract was signed before 1 July 2026 and the builder holds a DBI Certificate of Insurance, the cover continues under DBI.

A DBI Certificate of Insurance issued before 1 July 2026 also means the cover continues under the DBI policy. DBI cover does not transfer to Home Warranty.

How should you check which scheme applies?

Before relying on a threshold or maximum, check:

• the date the building contract was signed;
• whether a DBI Certificate of Insurance was issued and its date;
• whether the work is eligible domestic building work;
• the stated value of the work;
• the relevant policy’s PDS, including its limits and exclusions; and
• the current information on the BPC regulator page.

This is general information, not financial or legal advice. Check the BPC page and the relevant policy’s PDS for the current rules and the treatment of your particular work.

Sources

• Domestic Building Insurance and Home Warranty — Building and Plumbing Commission

FAQ

Is Home Warranty simply DBI with a higher maximum?

No. Although Home Warranty has a maximum assistance of $400,000 in total per home, the BPC also says it may provide broader protection. It can potentially address incomplete, defective or non-compliant work where the builder fails or refuses to complete or fix it, rather than being limited to death, disappearance or insolvency circumstances.

Does DBI automatically transfer to Home Warranty?

No. DBI cover does not transfer. Existing DBI policies continue under their current terms and conditions, including where the contract was signed before 1 July 2026 and a DBI Certificate of Insurance is held.

What is the difference between the DBI and Home Warranty value thresholds?

DBI was required for domestic building work valued over $16,000. Home Warranty applies to eligible domestic building work valued at more than $20,000 under eligible contracts signed on or after 1 July 2026. The applicable scheme also depends on the contract-signing and insurance-cover issue dates.

Is work valued at $20,000 above the Home Warranty threshold?

The BPC’s wording is “more than $20,000”, not $20,000 or more. A project valued at $20,000 is therefore not described by that threshold as being above it. Check the BPC page and the relevant PDS before deciding how the work must be valued.