Do I need domestic building insurance when building a house?

When building a home, builders should take out home indemnity insurance. This can give property owners cover for loss and damage sustained if the work isn’t completed or is defective, in certain circumstance. It’s a legal requirement for builders or tradespersons building a new home in all states and territories except for Tasmania and the Northern Territory. Domestic building insurance is sometimes called home indemnity insurance.

What is domestic building insurance?

Domestic building insurance may protect the property owner from loss or damage sustained if the work isn’t completed or is defective. However this insurance may only cover property owners in certain circumstances, such as where the builder has died or disappeared, insolvent or failed to comply with a tribunal or court order Domestic building insurance is called  different things in different states and territories For example, it is generally known as the home building compensation fund in New South Wales and Queensland..

There are different maximum cover limits for each state. For example, domestic building insurance in Victoria has a  maximum cover limit of $300,000. Also, builders may only be required to purchase domestic building insurance if the value of the building work is over a certain amount. It is important that you understand the terms and conditions of domestic building insurance that might apply to the work being carried out at your home.

Your builder or other tradesperson is responsible for purchasing home indemnity insurance.  But it’s worth checking that your builder has insurance before construction begins.

Worksite accidents that cause property damage or theft of building materials or equipment left on site by you or the builder are not covered by home indemnity insurance. That’s where construction all risks insurance could come in handy.

Get a Tradies Insurance quote

What is construction all risks insurance

Construction all risks insurance, also known as contractor’s insurance, usually covers builders or tradespersons for accidental loss or damage at a construction site, for events such as fire or storm. It can also insure against loss or damage relating to construction works, as well as third party liability.

GIO offers contractor’s insurance, called Tradies Insurance, which can meet the needs of different tradespersons. For example, you can get cover for things like the theft of equipment, public and products liability claims, and more.

Public and products liability cover provides insurance against claims for personal injury or property damage sustained by others, as a result of your business activities or products.

When can I get home and contents insurance for my newly built home?

Generally, you can get Home and Contents Insurance once you have received a certificate of occupancy. Try the Building Calculator to help choose your sum insured.

Get a Home and Contents Insurance quote

If the total cost of the work is under $50,000, GIO Home and Contents Insurance can cover legal liability resulting from an incident that happens at the insured address. Make sure you let us know before you plan to commence work on your home, to be sure of what is and isn’t covered. Have a read of the Product Disclosure Statement (PDS) for more info on what is and isn’t covered.

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Business Insurance is issued by AAI Limited ABN 48 005 297 807 trading as GIO. Consider the Product Disclosure Statement before buying this insurance. Go to for a copy

This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it We do not accept any legal responsibility for any loss incurred as a result of reliance upon it – please make your own enquiries.