Claims for defective building work under South Australian building indemnity insurance (BII) can usually be made up to five years from the date the work was completed, according to the South Australian Government’s guidance, updated 19 February 2026. The South Australian Government Financing Authority’s Building Indemnity Insurance page likewise says claims can be made within five years after the work has been finished (figures checked 1 October 2026). This is a time limit for making a claim, not automatic coverage or payment, so a homeowner who thinks a claim may exist should contact the insurer first.
How do “finished” and “completed” affect the claim period?
The official sources use slightly different wording, but both connect the five-year period to the building work rather than the date the defect was discovered.
| Official source | Claim period |
|---|---|
| South Australian Government | Claims can usually be made up to five years from the date the building work was completed |
| South Australian Government Financing Authority | Claims can be made within five years after the building work has been finished |
Neither wording explains how the final day is counted. If the contract, certificate or project records contain different completion dates, ask the insurer to check the relevant policy and explain how it applies the PDS.
The five-year period is also not the policy’s dollar limit. The amount potentially payable is the maximum limit stated in the policy, subject to its terms.
What must the defective work be connected to?
SAFA says a BII policy is issued in the homeowner’s name and covers financial losses up to the maximum policy limit when the builder:
- dies, disappears or becomes insolvent before the building work is completed; or
- dies, disappears or becomes insolvent before defective work can be rectified.
The stated builder event and financial loss both matter. A defective-work claim by itself does not establish that BII will respond; the insurer must assess the circumstances against the relevant policy terms.
What should I do if I suspect defective work?
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Contact the insurer first. SAFA specifically directs homeowners who think they may have a claim to approach their insurer in the first instance.
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Ask the insurer to confirm the relevant policy. Give it the builder’s details and ask whether the policy was in place for the work being questioned.
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Explain the connection to the loss. Identify the defective work, when the building work was completed, the financial loss or rectification cost, and whether the builder has died, disappeared or become insolvent.
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Keep the certificate and contract available. The certificate should identify the builder and licence number, insurer, issue date, insured work, and any policy limitations or conditions.
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Read the PDS and ask about conditions. Check how the policy defines completion, the claim period, covered loss and exclusions. Ask the insurer to explain anything that is unclear rather than relying only on the five-year headline.
SAFA lists the following contacts:
| Entity listed by SAFA | Contact |
|---|---|
| QBE Insurance (Australia) Limited | 1300 790 723 |
| Assetinsure | (02) 9251 8055 |
| AB Phillips — pool, spa and landscaping policies only | 1300 242 136 |
Start with the insurer identified on the certificate. If that is unclear, use the relevant contact or certificate-validation route to confirm the policy details.
Was BII required for the work?
The current South Australian Government guidance sets out the following requirements:
| Check | Current requirement |
|---|---|
| Type of work | Domestic building work that requires council approval |
| Value | $20,000 or more |
| Who arranges it | The building work contractor must arrange and pay for BII |
| Before work starts | The builder must have taken out BII, and both the homeowner and council must have received the certificate of insurance |
This threshold helps determine whether BII was required, but it does not prove that a particular policy responded to a particular loss. SAFA’s page lists certificate registers for QBE and Assetinsure, while AB Phillips certificates can be validated by phone. Confirm the policy directly with the relevant provider.
This is general information, not financial or legal advice. Check the current South Australian Government BII page and the policy’s PDS before relying on a claim deadline or coverage outcome.
Sources
- SA.GOV.AU — Building indemnity insurance
- South Australian Government Financing Authority — Building Indemnity Insurance
FAQ
Is the South Australian BII claim period always exactly five years?
The South Australian Government says defective-work claims can usually be made up to five years from completion, while SAFA says they can be made within five years after the work is finished. The summaries do not explain how the final day is counted, so check the PDS and ask the insurer to confirm the calculation.
Does the five-year period mean the insurer must pay every rectification bill?
No. Five years concerns the timing of a claim. Any payment is limited by the policy’s maximum limit and depends on the financial loss, the builder circumstances, the timing and the policy terms.
What if the builder has not died, disappeared or become insolvent?
The official coverage description is tied to those builder circumstances before completion or before defective work can be rectified. Ask the insurer whether the circumstances and loss fall within the policy; the five-year period alone does not establish coverage.
What should I do if I cannot find the certificate?
Contact the relevant provider to validate it. SAFA lists validation routes for QBE and Assetinsure, while AB Phillips certificates can be checked by phone. Do not assume either that cover exists or that it does not until the insurer has checked the policy.