Home Warranty (First Resort Home Warranty Scheme) – Common Questions & Answers for Builders

From 1 July 2026, Home Warranty (First Resort Home Warranty Scheme) replaces Domestic Building Insurance (DBI) for new eligible domestic building work. We have listed some common questions and answers:

1. What is HIAIS's role?

HIA Insurance Services is a distributor for the BPC and, as an approved provider, helps builders access Home Warranty through the Building and Plumbing Commission (BPC). As a distributor, HIAIS uses the BPC’s system to manage applications on your behalf.

2. What is MFR?

Minimum Financial Requirements (MFR) are used to assess whether a builder has the financial capacity to carry out domestic building work and meet their obligations, and to set a Maximum Construction Capacity (MCC).

MFR replaces the current Domestic Building Insurance eligibility assessment process.

3. What is the Maximum Construction Capacity?

Maximum Construction Capacity is the total value of domestic building work a builder can carry out at any one time.

It replaces the previous total construction limit used under Domestic Building Insurance.

Builders are required to monitor their work in progress and stay within their approved Maximum Construction Capacity. If you need more capacity, you should apply to the BPC before you enter into a contract that would cause, or is likely to cause, you to exceed your approved limit.

4. Is the MFR assessed yearly?

From 1 July 2026, new arrangements apply to how domestic building work is insured and how your financial capacity is assessed as a registered domestic builder.

If you are an existing registered domestic builder with an active DBI Letter of Eligibility on 30 June 2026, you will automatically transition to the new Minimum Financial Requirements (MFR). Your current approved limit will become your Maximum Construction Capacity (MCC).

You will not be automatically reassessed on 1 July 2026. The BPC may reassess your financial capacity if you apply to increase your Maximum Construction Capacity, breach your registration conditions, provide updated financial information, or the BPC starts a review.

5. What assets qualify for MFR?

For the purposes of the MFRs and Guidelines, 'Assets' means the sum of the following owned by, or payable to, the builder:

1. cash held;
2. amounts payable for Domestic Building Work which have, at that time, been performed by the Registered Building Practitioner under an Insurable Domestic Building Contract but which have not yet been paid; 
3. amounts owing;
4. the value of inventory;
5. the value of any investment convertible to cash on the date the Assets are calculated;
6. the value of a motor vehicle;
7. the value of plant and equipment;
8. the value of real property;
9. the value of a loan given to a Related Entity of the Builder, where that Related Entity holds ANTA (excluding any Guarantee) of at least $0;
10. the value of shares in companies listed on a recognised stock exchange;
11. the value of tools of trade; and
12. the maximum guaranteed amount specified in any executed Guarantee provided by or on behalf of the Builder to BPC in accordance with clause 12.

6. What is the 10-day timeframe from signing contract to getting insurance policy?

The registered builder must pay the Home Warranty premium before the earlier of:

• 10 business days after the building contract is signed
• the eligible domestic building work starting

7. What if you are a registered builder but doing your own home. What are the requirements in that case?

For all Owner Builder requirements, please refer to the BPC website that provides information on:

• how to become an owner builder; and
• owner builder obligations and insurance requirements.

8. When applying for a Notice of Cover what is considered structural or non structural?

The BuildVic portal provides the following information:

A structural element is any internal or external load-bearing component of a building that is essential to the stability of the building or any part of it, including (but not limited to) foundations, floors, walls, roofs, columns and beams; or any component (including waterproofing) that forms part of the external walls or roof of the building.

A non- structural element of the building or a defect that is in a structural element of the building, but which does not cause physical damage to any part of the building and is not likely to result in imminent collapse and does not render the building unsuitable for occupation.