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South Australia Strengthens Homeowner Insurance Amid Rising Builder Insolvencies

Increased Payouts Aim to Safeguard Homeowners from Financial Losses

South Australia Strengthens Homeowner Insurance Amid Rising Builder Insolvencies?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The South Australian Government has taken decisive action to bolster homeowner protection in response to a surge in builder insolvencies.
Effective from 1 October 2025, the maximum insurance payout for homeowners will increase from $150,000 to $250,000.
This measure aims to provide greater financial security to homeowners left with incomplete or defective properties due to builder failures.

This policy change follows a comprehensive review into building indemnity insurance, highlighting the need for enhanced consumer protection amidst the rising number of builders entering external administration. The increased payout limit is designed to cover the costs associated with completing unfinished projects or rectifying defects, thereby reducing the financial burden on affected homeowners.

For homeowners, this development underscores the importance of ensuring their builders are adequately insured and compliant with the latest regulations. It also serves as a reminder to thoroughly vet builders and understand the extent of coverage provided by their insurance policies.

In summary, South Australia's proactive approach aims to safeguard homeowners from the financial repercussions of builder insolvencies, reinforcing the need for robust insurance coverage and regulatory compliance within the construction industry.

Published:Saturday, 20th Dec 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

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Surrender Value:
The amount of money an insurance policyholder will receive if they voluntarily terminate the policy before it matures.