A builder can show you a certificate that looks completely legitimate. The only way to know if it's actually real is to check it against the official register yourself — and it takes less time than reading the contract.
Why this insurance exists
In NSW, Home Building Compensation (HBC) cover — administered by icare through the Home Building Compensation Fund (HBCF) — is legally required for residential building work valued over $20,000 including GST. In Victoria, the equivalent is Domestic Building Insurance (DBI), administered by the Victorian Managed Insurance Authority (VMIA), required for work over $16,000. Both protect you if your builder becomes insolvent, dies, disappears, or has their licence suspended before finishing the job or fixing major defects.
Two different things: eligibility and an actual certificate
A builder's general "eligibility" to obtain HBCF cover is not the same as having a Certificate of Insurance for your specific project — eligibility just means they're approved to apply for cover; the Certificate of Insurance has to be issued separately for each individual job. A builder waving around a general eligibility document isn't the same as showing you proof your specific project is actually covered.
How to actually verify it yourself
- NSW: use icare's HBCF Certificates Register to check the validity of an insurance policy issued under the Home Building Act 1989, including any previous claims against it. You can also cross-check the builder's licence on the Verify NSW Public Register to confirm they're licensed for the type of work involved.
- Victoria: use VMIA's DBI Policy Verification search — enter the policy number and it confirms whether it's a genuine DBI policy, the property address it was issued for, and the issue date. Note this only covers certificates issued by VMIA after 1 July 2015, and VMIA isn't the only insurer that has issued DBI in Victoria historically.
What to check the details against
The name on the building contract must match the name on both the builder's licence and the Certificate of Insurance — a mismatch here (a different trading name, a related company) is a genuine early warning sign, not a technicality. In Victoria specifically, DBI only applies if the builder held a current Building Practitioners Council (BPC) registration at the time the contract was signed and the insurance was obtained — engaging an unregistered builder means the protection simply doesn't apply, even if a policy exists.
When to do this check
- Before signing the contract — ask for the certificate details, not just a verbal assurance that "it's all covered."
- Before paying any deposit — you should receive proof of cover for your specific property before the builder starts work or takes any payment.
- Independently verify it yourself on the official register — don't rely solely on a PDF or photo the builder sends you.
- If anything doesn't match (names, address, dates), raise it directly and get it resolved in writing before proceeding.
What this means practically
- A builder's insurance certificate should always be checked against the official government register — icare's HBCF Certificates Register in NSW, VMIA's DBI Policy Verification in Victoria — not taken at face value.
- General "eligibility" and a project-specific Certificate of Insurance are different things — make sure you have the latter for your actual job.
- The name on your contract, the builder's licence, and the insurance certificate must all match.
- Do this check before paying any deposit — insurance verified after work has started or money has changed hands offers you far less protection.
Sources
- icare — Before I build, what do I need to know?: icare.nsw.gov.au
- VMIA — Domestic Building Insurance Policy Verification: dbi.vmia.vic.gov.au
Related Kibbo Tools
- Contractor Verification Checklist — the full pre-hire due diligence process, including insurance verification.