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  • What is a Letter of Eligibility?

What is a Letter of Eligibility?

Builders Licence
Monday, 10 December 2018 / Published in Builder Registration VIC

What is a Letter of Eligibility?

What is the confusion around insurance and providing a Letter of Eligibility for Domestic Builder Registration?

(As you are aware Registered Building Practitioners licenced in Domestic Building classes are required to have appropriate insurance for work valued at more than $16,000.)

So, when you submit your application you don’t have to have this insurance however at some point the Victorian Building Authority (VBA) will ask you to provide proof that you have the capacity to be insured when you get registered.

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.

So what is a Letter of Eligibility?

Letter of Eligibility for Domestic Building Insurance is granted by an insurer to show that you are “eligible” to get the required insurance once you get your registration. It 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

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