New Rights For Home Builders

New protections for Victorian homeowners building or renovating a home will take effect from 1 July 2026, changing how warranty insurance works for new domestic building contracts.

The changes apply to domestic building contracts signed on or after 1 July 2026 and cover projects valued at more than $20,000 on homes up to three storeys high.

Under the new Home Warranty insurance scheme, homeowners will be able to make claims for incomplete, defective, faulty or non-compliant building work even if the builder is still operating.

Currently, many claims can only be made in limited circumstances, such as when a builder has died, disappeared or become insolvent.

The new system introduces coverage throughout the life of a building project, including before construction begins, during the build and after completion.

For residents across Wyndham planning to build a new home, undertake a major renovation or add an extension, the changes could provide earlier access to support if problems arise during construction.

If work has not started, homeowners may be able to claim up to 5 per cent of their deposit in certain circumstances.

The scheme also includes potential assistance with temporary accommodation, removal and storage costs where building delays or defective work create additional expenses.

The changes may also affect builders, who will need to operate under the new insurance framework for eligible contracts signed from 1 July.

Homeowners may have greater avenues to seek compensation or rectification where building work does not meet required standards.

The new Home Warranty insurance will only apply to contracts signed from 1 July 2026 onwards.

Contracts signed before that date will remain under the existing domestic building insurance arrangements.

Residents considering a building project may wish to understand the differences between the two systems before signing a contract.