What is the confusion around insurance and providing a Letter of Eligibility for Domestic Builder Registration?
Any Registered Building Practitioner, licenced in Domestic Building classes, are required to have appropriate insurance for work valued at more than $16,000.
The Victorian Building Authority (VBA) will ask you to provide proof that you have the capacity to be insured when you get registered, when you submit your application you don’t have to have this insurance however at some point.
Once you have passed your interview with the assessor at the VBA, they will require proof of your eligibility to be covered for Domestic Building Insurance in order to issue you with a Builders Licence.
Letter of Eligibility for Domestic Building Insurance is granted by an insurer. It shows that you are “eligible” to get the required insurance once you get your registration. It also shows that an insurer will give you Domestic Building Insurance for jobs as a Registered Builder.
A letter of eligibility is not a certificate of insurance for a specific job.
It simply means that you as a builder have been assessed and have been granted the right to apply for insurance for projects and jobs you take on as a Registered Building Practitioner.
A period of 12 months is approved for a Letter of Eligibility. Once your registration has been approved you should then proceed to obtain insurance before commencing any work.
So….. you don’t need insurance cover to go for your Registration what you need is a Letter of Eligibility. To start this process, you can visit www.dbi.vmia.vic.gov.au/builders
If you have any questions please call me on 0488 278899
Cheers
Michael – Builders Licence Made Easy
