DBI Eligibility Application Guide for Victorian Builders

Learn how to successfully submit your Domestic Building Insurance (DBI) Eligibility Application in Victoria. As an authorised distributor of the Building & Plumbing Commission (BPC), we explain required documents, understanding your construction and category limits, how to increase your limits, and the assessment process. Get tips on minimising delays and ensuring your builder eligibility for DBI.

Domestic Building Insurance Eligibility Application

As an authorised distributor of the Building & Plumbing Commission (BPC), issuing Domestic Building Insurance (DBI) in Victoria, please note the requirement for the following information to support when submitting a DBI Eligibility Application

To support your DBI Eligibility Application to review your construction limit and/or category limits and minimise delays with submitting your application, we have provided some information below:

Letter of Eligibility:

• Your Letter of Eligibility will state all your limits along with your Registered Building Practitioner information.
• You can download your Letter of Eligibility directly from the BuildVic portal and manage your BPC DBI and purchase Certificate of Insurances securely online www.buildvic.vic.gov.au.

Understanding your Limits:

Your overall limit, also known as total construction limit, is the total value of works requiring insurance annually, while the category limit is the maximum value for a single project. These limits are crucial for ensuring you have adequate coverage and financial protection for your projects.

The Total Construction Limits represents the total value of works you can undertake at any given time. For example, $1,000,000 means you can be engaged in projects worth $1,000,000 simultaneously. This figure is not a one-time limit; once a project is completed, its value is restored to your available construction limit, allowing you to issue additional Certificates of Insurance/DBI and take on more projects.

Increasing Overall Limit:

For a category limit increase, we will seek to accommodate it if it is within the total construction limit. A financial review may be required depending on when last review undertaken, size of the projects undertaken under the category, complexity of the project etc. You need to complete a forecast of works, detailing upcoming projects and their values - BPC will then review the request.

How is the assessment for eligibility for domestic building insurance (DBI) determined?

The BPC document provides more information on how the assessment is determined – please read for more information: Assessment of eligibility | Building and Plumbing Commission

Builder eligibility/review Application process:

The BPC will require a completed application form which includes a Statutory Declaration page.

The Statutory Declaration must be completed by the Registered Building Practitioner, directors of the builder entity or the partners of the partnership entity and witness by an authorised person under section 30(2) of the Oaths and Affirmations Act 2018.

A checklist is also included with the Eligibility Application form and all relevant items listed on the checklist is submitted with your application form.

The assessment process may include (but is not limited to) the following:

• net tangible assets
• net turnover growth
• shareholders’ funds/sales
• gross & net profit margins
• interest cover (times covered)
• work in Progress reports
• debtor collection days
• creditor payment days
• working capital position
• return on equity
• return on assets
• cash flow projections against actuals
• statement of assets and liabilities of the
• directors/sole trader/partners
• trust deeds

To access the Eligibility application form click: Domestic Building Insurance Eligibility Application Form for Builders

We’re here to help

If you are having trouble or need assistance with your DBI applications, a HIA Insurance Services specialist can support your business. Please contact us for more information