{{ propApi.closeIcon }}
Our industry
Our industry $vuetify.icons.faArrowRight
Housing industry insights Economics Insights Data & forecasts Tailored research and analysis Advocacy & policy Advocacy Policy priorities Position statements Submissions News and inspiration Industry news Member alerts Media releases HOUSING Online
Business support
Business support $vuetify.icons.faArrowRight
Become an apprentice host Hire an apprentice Why host a HIA apprentice? Apprentice partner program Builder & manufacturer program Industry insurance Construction legal expenses insurance Construction works insurance Home warranty insurance Tradies & tool insurance Member perks Toyota vehicles The Good Guys Commercial Fuel savings See all Planning & safety solutions Building & planning services Safe Work Method Statements (SWMS) Solutions for your business Contracts Online Advertise jobs Trusted support & guidance Contracts & compliance support Industrial relations
Resources & advice
Resources & advice $vuetify.icons.faArrowRight
Building it right Building codes Australian standards Getting it right on site See all Building materials & products Concrete, bricks & walls Getting products approved Use the right products for the job See all Managing your business Dealing with contracts Handling disputes Managing your employees See all Managing your safety Safety rules Working with silica See all Building your business Growing your business Maintaining your business See all Other subjects Getting approval to build Sustainable homes See all
Careers & learning
Careers & learning $vuetify.icons.faArrowRight
A rewarding career Become an apprentice Apprenticeships on offer How do I apply? Frequently asked questions Study with us Find a course to suit you Qualification courses Learning on demand Professional development courses A job in the industry Get your builder's licence Continuing Professional Development (CPD) Further your career Find jobs
HIA community
HIA community $vuetify.icons.faArrowRight
Join HIA Sign me up How do I become a member? What's in it for me? Mates rates Get involved Become an award judge Join a committee Partner with us Our initiatives HIA Building Women GreenSmart Kitchen, bathroom and design hub Get to know us Our members Our people Our partners Support for you Charitable Foundation Mental health program
Awards & events
Awards & events $vuetify.icons.faArrowRight
Awards Awards program People & Business Awards GreenSmart Australian Housing Awards Awards winners Regional Award winners Australian Housing Award winners 2024 Australian Home of the Year Enter online Industry events Events in the next month Economic outlook National Conference Events calendar
HIA shop
HIA shop $vuetify.icons.faArrowRight
Most popular products National Construction Code Vol 1 & 2 Waterproofing wet areas AS 3740:2021 HIA Guide to Waterproofing HIA Guide to NCC Livable Housing Provisions Top categories Building codes & standards Contracts & documents Guides & manuals Safety documents Signage For your business Contracts Online Digital Australian Standards Digital Resource Library Forecasts & data
About Contact Newsroom
$vuetify.icons.faTimes
$vuetify.icons.faMapMarker Set my location Use the field below to update your location
Address
Change location
{{propApi.title}}
{{propApi.text}} {{region}} Change location
{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location

$vuetify.icons.faPhone1300 650 620

Insurance hike will damage Victorian home building

Media release

Insurance hike will damage Victorian home building

Media release
“Today’s announcement by the Victorian Managed Insurance Authority (VMIA) that Domestic Building Insurance (DBI) premiums will increase by 43 per cent from 1 September 2023 is a blow for Victorian home builders and their clients,” said Keith Ryan, HIA Executive Director Victoria.

”The Victorian Government’s decision is only about improving the financial performance of the DBI scheme and is premature as the industry waits for the government to announce possible reforms to the scheme.

“This premium increase, which will directly add to the fees and charges paid by home buyers, will not be accompanied by any changes to the insurance benefits.

“The increase also adds to many challenges facing the residential building industry. This will do nothing to help deliver an increased number of desperately needed new homes.

“Home builder cashflow positions, already precariously thin under the weight of sustained pressure from rising building material and labour costs, will be further squeezed by the significant hike in DBI premiums.

“Builders want to stay competitive, but they will have little option but to factor the premium rise into the cost of a new dwelling and pass on to home buyers,” said Mr Ryan.

While acknowledging pressure on premiums has been building for some time due to VMIA’s growing claims exposure to builder insolvencies in recent years, Mr Ryan said the order of magnitude of the across-the-board increase from 1 September is unfair and without precedence.

The vast majority of Victorian builders are not triggering DBI claims and are continuing to complete homes for their clients despite the current challenges they all face.

“Last week’s decision by the Reserve Bank to keep interest rates on hold provided a respite for the embattled residential building sector.

“This announcement has dented that relief and is a stark reminder to home builders that the cost of doing business in Victoria is getting harder, not easier," concluded Mr Ryan.

For more information please contact:

Keith Ryan

Executive Director - Victoria
Latest articles
View all news $vuetify.icons.faArrowRight
18 Jul
We are moving HIA QLD relocates to Newstead

After more than 25 years at our Queensland home base located in Edmondstone Street, South Brisbane, our Queensland team is on the move.

17 Jul
Federal Government responds to CFMEU allegations

Today, Tony Burke, Federal Minister for Employment and Workplace Relations has set out the Government’s response to the reported behaviour of the construction division of the CFMEU.

17 Jul
WA, QLD, SA set for an increase in detached home building

“Sales of new homes nationally increased by 15.7 per cent in the June quarter 2024 compared to the March quarter indicating that the number of homes commencing construction is set to increase later this year,” stated HIA Economist, Maurice Tapang.

16 Jul
Labor's support for UTAS city move will alleviate housing stress

The Opposition Leader’s announcement that Tasmanian Labor will back the University of Tasmania’s (UTAS) move from the Sandy Bay campus into the city, freeing up land for up to 2,500 new homes, is welcomed.