What if I don't have Building Indemnity Insurance?

If your builder didn't provide BII (which is illegal for contracts over the threshold), you may have legal claims against them, but insurance won't help. Seek legal advice immediately. You may also report the builder to Consumer & Business Services SA.

Will insurance cover everything I've paid?

Insurance covers completion of work and rectification of defects, up to the policy limit ($250,000). It considers work completed vs payments made. If you've overpaid relative to work done, you may not recover the full difference. This is why progress payment schedules matter.

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Help & Guidance

Your Builder Went Bankrupt

Name: BuildPilot
Address: Adelaide, SA, 5000, AU
Telephone: 1300 885 919
Price range: Free Consultation

What to do right now

Discovering your builder has gone into administration or liquidation is stressful and confusing. But there are protections in place, and specific steps you need to take immediately to protect your position. This guide is based on advice from the Housing Industry Association (HIA), QBE Insurance, and Consumer Affairs Victoria.

What To Do Right Now

Don't Panic, Don't Act Rashly

Do NOT terminate your contract, pay any subcontractors directly, or engage a new builder without legal advice first. These actions could void your insurance coverage or create liability issues.

Confirm the Insolvency

For companies: Check ASIC (Australian Securities and Investments Commission) at asic.gov.au. For sole traders/partnerships: Check AFSA (Australian Financial Security Authority). Get the name of the administrator or liquidator.

Find Your Insurance Certificate

Locate your Building Indemnity Insurance (BII) certificate. In South Australia, this is typically provided by QBE Insurance. Your builder should have given you this before you made any payments.

Contact Your Insurer Immediately

In SA, contact QBE on 1300 790 723. You typically have 90-180 days from becoming aware of the insolvency to lodge a claim. Don't delay.

Document Everything

Photograph the current state of construction. Gather all contracts, variation orders, payment receipts, and correspondence. Note what work is complete and what remains.

What NOT To Do

Do NOT pay subcontractors directly, even if they pressure you
Do NOT engage a new builder without insurer approval
Do NOT terminate the contract without legal advice
Do NOT remove materials from the site
Do NOT make statements about fault or liability

Building Indemnity Insurance (BII) in SA

Building Indemnity Insurance is mandatory in South Australia for domestic building work. It protects you if your builder dies, disappears, or becomes insolvent.

What's Covered

Completion of unfinished work (up to policy limit)
Rectification of defective work
Loss of deposit in some circumstances

Coverage Limits

Maximum: $250,000 maximum (from October 2025)

Period: 5 years from practical completion for defects

BII only activates on insolvency, death, or disappearance. It does not cover disputes with solvent builders.

Insurance Claim Process

Notify QBE

Call 1300 790 723 or lodge online. Provide builder details, Certificate of Insurance, and proof of insolvency.

Submit Documentation

Contract, payment evidence, photos of current state, liquidator correspondence.

Site Inspection

QBE will arrange inspection to assess work completed and remaining.

Assessment

QBE obtains quotes (typically three) for completion or rectification.

Resolution

QBE may manage repairs directly, pay you to arrange completion, or cash settle (less excess).

Common Questions

Administration doesn't automatically mean work stops. The administrator may continue the business or find a buyer. Contact the administrator directly, as work might proceed. Only if it moves to liquidation or the administrator confirms work won't continue should you claim on insurance.