Ensuring the correct category of Construction is selected when issuing a VMIA DBI Certificate on the BuildVic portal.

As an authorised distributor of the Victorian Managed Insurance Authority (VMIA) Domestic Building Insurance (DBI) in Victoria, we regularly monitor changes to support our clients. Below we reviewed some of our recent observations from builders using the BuildVic portal.

DBI certificate application may referral due to incorrect Construction Categories being selected. To minimise delays with the issue of your DBI certificate and subsequent building permits, we have provided some guidance below.

Construction categories:

• C01 – New Single Dwelling Construction: This refers to the construction of a single new dwelling*.
  • If the project contract value is under $200,000, it will automatically refer to the VMIA for review. The VMIA may require supporting documents to complete their review.
  • If the building contract is over two years old, it will automatically refer to the VMIA for review. The VMIA may require supporting documents to complete their review.
• C03 – New Multi Dwelling Construction: This refers to the construction of 3 or more new dwellings* on the one site or under the one building contract.
  • If the project is a 10 or more multi dwelling construction, the VMIA will require supporting documents for them to complete a review.
• C04 – Alterations/Additions/Renovations – Structural – This refers to the Structural Alteration/Addition/Renovation of an existing single dwelling*.
• C05 – Swimming Pool: This refers to a swimming pool.
  • If swimming pool is part of a new single dwelling project, swimming pool can be added to the existing building contract and the existing C01 certificate value can be amended to include the swimming pool.
• C06 – Refurbishment – Non-Structural - This refers to the Non-Structural Alteration/Addition/Renovation of an existing single dwelling*.
  • If the project includes waterproofing or wet area work, then for insurance purposes, the construction category will need to be changed to CO4 and the VMIA will charge the structural rate.
  • If the project has a contract value more than $100K, then the VMIA will charge the structural rate.
• C07 – Other. This category will automatically refer and the VMIA will require a complete & signed building contract.

Category Limit:

If your project is above your current category limit, your certificate will be referred to the VMIA to review. In some cases, the VMIA may request a review of your DBI eligibility, prior to approving the certificate. This will include, completing an Eligibility Application form and providing the required supporting documents.

Alteration/Addition Projects applied for incorrectly as New Single Dwellings

We are commonly seeing certificate applications for structural renovations referred for review where C01 – New Single Dwelling Construction is selected in lieu of C04 – Alterations/Additions/Renovations - Structural. We note that the C01 is selected by default when you are applying for a certificate on BuildVic, and it is important to double check and select the correct category.

By selecting the incorrect category, where the structural renovation is applied for under a C01 – New Single Dwelling Construction (instead of C04) and is under $200k, the insurer will require additional information in support of the certificate application including a copy of the contract and scope of works. We will normally identify that the certificate application is intended to be a C04 certificate application in this circumstance and will assist with the withdrawal and reissue of the certificate correctly.

Where the structural renovation is applied for under a C01– New Single Dwelling Construction (instead of the correct C04) and is over $200k, BuildVic may issue the certificate (where you have selected the appropriate C01 category limit). In this circumstance we are typically notified of the incorrect construction category on review by your building surveyor.

In this situation, we are required to submit an application for the amendment of the certificate which may cause delays with your permit issue and commencement of the project.

If you have any enquiries or would like more information about Domestic Building Insurance, please contact our HIA Insurance Services specialist who can support your business.