RENOVATION & EXTENSION INSURANCE · VICTORIA
Building Insurance During a Renovation or Extension in Victoria
A building contract and your normal home insurance policy do not necessarily protect the same risks during construction.
Short answer
Before a renovation or extension starts, confirm both the statutory building insurance that applies to the contract and whether your existing home and contents insurer needs to be told about the works. For qualifying Victorian major domestic building contracts signed from 1 July 2026, Home Warranty insurance applies under the new first-resort scheme. Your own insurer may also require notification or additional cover during renovation.
Victoria changed the statutory insurance system in July 2026
For qualifying major domestic building contracts signed from 1 July 2026, Victoria introduced Home Warranty insurance as a first-resort scheme. Consumer Affairs Victoria states that the cover applies to domestic building work worth more than $20,000 on homes up to three storeys.
After the qualifying contract is signed, the builder takes out the cover and the homeowner should receive a notice of cover.
Tell your home insurer before work starts
A renovation or extension can change the risk profile of the property. Before construction, contact your home and contents insurer and explain the scope, estimated value, duration and whether you will remain living in the house.
Do not assume your normal policy automatically covers the property in exactly the same way while substantial building work is underway.
Insurance does not replace a clear contract and good records
Keep the signed contract, approved plans, specifications, variations, invoices, progress-payment records, insurance notices and completion documents together.
Insurance is one layer of protection. It does not remove the need to understand the scope, payment stages, responsibilities and processes in the building contract.
Ask the insurance questions before paying money
- ✓What statutory Home Warranty or legacy domestic building insurance applies to this contract?
- ✓Have I received the required notice or certificate for the property?
- ✓Does my home and contents insurer need to endorse or change my policy?
- ✓What happens to cover if I move out during construction?
- ✓What records should I keep if a claim is ever required?
Questions homeowners ask
Do renovations need Home Warranty insurance in Victoria?+
For qualifying major domestic building contracts signed from 1 July 2026, Consumer Affairs Victoria states that Home Warranty insurance applies when the work is worth more than $20,000 and the home is up to three storeys. Check the current rules for your specific contract.
Should I tell my home insurer that I am renovating?+
Yes. Contact your insurer before work starts so they can tell you whether your existing policy remains suitable or needs to be changed.
Is builder public liability insurance the same as Home Warranty insurance?+
No. They address different risks. Ask for the relevant evidence and obtain advice from the insurer if you are unsure what a policy covers.
What insurance documents should I keep?+
Keep the notice or certificate of cover, policy documents, building contract, variations, payment records and completion certificates with your project records.
Ready to discuss your project?
Tell EBC what you are planning and we will help you work through the practical next steps.
Related EBC pages
- Building Contract Checklist
- Building Delays in Victoria
- Home Building Process in Victoria
- Building Variations Explained