SPASA

SA: Changes to Building Indemnity Insurance

August 6th, 2025

SA – Changes to Building Indemnity Insurance

6 August 2025

The South Australian Government recently announced changes to Building Indemnity Insurance for residential building work that will start on 1 October 2025. These changes provide increases to the policy limits and the work value threshold for residential building work including swimming pools, that may assist SPASA members when conducting their business.

What is the new Policy Limit?

  1. From 1 October 2025, the policy limit for new Building Indemnity Insurance policies issued by QBE will increase to $250,000. This higher limit will apply only to new policies issued by QBE on or after that date. Policies issued prior to 1 October 2025 will retain their existing $150,000 limit.

  2. From 10 November 2025, the $250,000 policy limit will be prescribed in the Building Work Contractors Regulations and will apply to all new policies issued in South Australia, regardless of the insurer.  Policies issued by insurers other than QBE before 10 November 2025 will continue to be subject to the $150,000 limit.

Threshold

  1. From 10 November 2025, the threshold at which Building Indemnity Insurance is required in South Australia will increase from $12,000 to $20,000, as prescribed in the Building Work Contractors Regulations.  Until this date, policies will continue to be issued for building work valued below $20,000.


For more information about the changes, please visit  www.bii.sa.gov.au

Any SPASA members who would like help and advice with their warranty insurance, please reach out to our member services partner, AB Phillips https://www.abphillips.com.au/spasa

You can learn more about all the SPASA member benefits on the SPASA website: https://www.spasa.com.au/membership-benefits

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