South Australia Building Indemnity Insurance: $20,000 Threshold and $250,000 New-Policy Limit

From 10 November 2025, domestic building work requiring council approval falls within the building indemnity insurance (BII) requirement when it costs $20,000 or more, and the contractor must arrange and pay for the policy, according to the South Australian Government Financing Authority (SAFA) BII page and the SA Government page published 19 February 2026. SAFA’s current table shows a $250,000 limit for new Assetinsure policies from 10 November 2025, QBE policies from 1 October 2025 and AB Phillips policies from 13 October 2025. Figures checked 1 October 2026.

When does the $20,000 threshold apply?

The approval requirement and project value must both be considered. SAFA refers to building work requiring development approval, while the SA Government describes domestic building work that must be approved by council.

Rule timing	Project value	Work covered by the requirement
Before 10 November 2025	$12,000 or more	Building work requiring development approval
From 10 November 2025	$20,000 or more	SAFA: building work requiring development approval; SA Government: domestic building work requiring council approval

SAFA says the Building Work Contractors Act 1995 (SA) and Regulations required builders to take out BII for every contract they entered into. The contractor—not the homeowner—is responsible for arranging and paying for the policy.

The official pages do not explain which disputed project costs should be included when calculating the threshold. If the value is close to $20,000, confirm the calculation and approval requirement before work starts.

A homeowner cannot take out BII for building work they are carrying out themselves.

Does every new policy have a $250,000 limit from the same date?

No. The limit depends on the insurer, product and policy issue date.

Insurer or product	Policy issue date	Policy limit
QBE	1 July 2013 to 30 June 2017	$80,000
QBE	1 July 2017 to 30 September 2025	$150,000
QBE	1 October 2025 onwards	$250,000
Assetinsure	24 May 2023 to 9 November 2025	$150,000
Assetinsure	10 November 2025 onwards	$250,000
AB Phillips — pools, spas and landscaping only	1 July 2017 to 12 October 2025	$150,000
AB Phillips — pools, spas and landscaping only	13 October 2025 onwards	$250,000

Assetinsure therefore reached the $250,000 limit on 10 November 2025, while QBE and AB Phillips reached it on 1 October 2025 and 13 October 2025 respectively.

SAFA describes BII as protecting financial losses up to the maximum policy limit. The limit is not a statement that every loss will be paid at that amount; the policy circumstances, exclusions, limitations and conditions still need to be checked.

SAFA currently underwrites BII through a reinsurance arrangement with QBE Insurance (Australia) Limited. Assetinsure and AB Phillips are not part of SAFA’s BII reinsurance arrangements. AB Phillips acts as an agent for Berkshire Hathaway, and its listed South Australian product is limited to pools, spas and landscaping.

Whose name must be on the policy?

A BII policy must be issued in the homeowner’s name. The builder arranges the cover and pays for it, including where the policy is obtained through an insurance broker.

SAFA says a builder seeking BII can arrange eligibility through an insurance broker, which can facilitate cover from any of the three insurers in the South Australian market. A builder may also approach Assetinsure or AB Phillips directly.

The certificate should match the property, builder and work covered. Do not rely only on a certificate supplied without checking that it is current.

What must happen before building work starts?

The SA Government’s required sequence is straightforward:

1. The builder must take out the BII policy.
2. Both the homeowner and council must receive a copy of the certificate of insurance.
3. Building work cannot start until both of those actions are complete.

SAFA encourages homeowners to check that a valid certificate is in place. Its page lists certificate registers for QBE Insurance (Australia) Limited and Assetinsure. AB Phillips certificates can be validated by contacting the insurer on 1300 242 136.

The certificate records:

• the builder’s name and licence number;
• the insurance company;
• the policy issue date;
• a description of the insured work; and
• any policy limitations or conditions.

Keep a copy for your records. SA Government also advises confirming the policy with the insurer, reading the contract and certificate carefully, and asking the contractor to explain anything you do not understand before signing documents.

Who does BII protect?

The SA Government says BII protects both the current homeowner and future owners in specified circumstances. Protection applies if the builder:

• dies;
• disappears; or
• becomes insolvent,

and the loss relates to work that has not been completed or defective work requiring rectification.

The financial protection is stated as being up to the maximum policy limit. When selling the property, the homeowner must disclose whether indemnity insurance is in place. The next owner should confirm the policy details directly with the insurer.

BII does not replace all other property protection. The SA Government says items owned by the homeowner at the building site must be protected and separately insured during construction, and the building must be insured when construction is complete.

How long is the defective-work claim period?

SAFA says claims for defective building work can be made up to five years after the work has been finished. The SA Government similarly says defective-work claims can usually be made up to five years from completion.

If you think you may have a claim, contact the insurer first. Have the completion date and certificate details available, and check the policy’s Product Disclosure Statement (PDS) for its full conditions.

This is general information, not financial or legal advice. Check the current SA Government and SAFA guidance, and consult Consumer and Business Services, South Australia’s building licence regulator, for licensing questions. Always read the contract, certificate and policy PDS.

Sources

• Building Indemnity Insurance — South Australian Government Financing Authority
• Building indemnity insurance — SA Government

FAQ

Does every renovation costing $20,000 or more need BII?

No. Under the current rule described by the SA Government, the work must be domestic building work requiring council approval as well as costing $20,000 or more. Check the approval requirement before work starts if it is unclear.

Is the policy limit $250,000 from 10 November 2025?

It is $250,000 for new Assetinsure policies from 10 November 2025. QBE policies reached that limit from 1 October 2025, while AB Phillips policies reached it from 13 October 2025. AB Phillips cover is limited to pools, spas and landscaping.

Must the certificate be received before work begins?

Yes. The builder must take out the policy, and both the homeowner and council must receive the certificate before building work starts.

Does BII protect a future owner?

The SA Government says it protects future owners in relation to specified uncompleted-work and defective-work circumstances if the builder dies, disappears or becomes insolvent. A seller must disclose whether indemnity insurance is in place, and the future owner should confirm the details with the insurer.

What should I do if I think I have a defective-work claim?

Contact the insurer first. SAFA says defective-work claims can be made up to five years after the building work has been finished, while the SA Government describes the period as usually up to five years from completion.