Building Protection Insurance
Every step, covered.
Construction insurance principally addresses risks during the build. Property insurance generally responds to insured external events after completion.
A latent defect may already exist at completion but emerge years later. Building Protection Insurance is designed to address that gap, supported by disciplined risk selection and independent technical evidence before cover begins.
Design
Technical review begins
Construction
Risk-based independent inspection
Practical completion
Final release
Years 1–10
Building Protection Insurance
Core features
Protection runs for the period stated in the policy following practical completion.
A beneficiary does not need to establish fault or negligence before making a valid claim under the policy.
Cover focuses on defined structural, safety-critical and weatherproofing elements.
The insured trigger is based on defects within the scope of the applicable policy wording.
Protection is designed to remain with the building for beneficiaries throughout the insured period.
Scope, limits, exclusions and eligibility differ by jurisdiction and policy. The Policy Wording and Schedule determine cover.
Claims
Subject to the policy, insured costs may include:
Finishes, contents, plant, consequential losses and all construction defects are not automatically insured.
Building Protection Insurance does not replace the responsibilities of developers, builders, designers, certifiers or other construction participants.
It is not a maintenance contract, building certification, performance guarantee or fund for upgrading a building.
Index combines disciplined risk selection and technical oversight with meaningful long-term protection.
The Australian market
Australia is developing jurisdiction-specific approaches to long-term building protection within existing regulation, construction practice and consumer protection frameworks.
Index is designing its underwriting, inspection and policy approach for those Australian conditions.
NSW has established a statutory decennial liability insurance framework for residential strata apartment buildings over three storeys.
An acceptable policy may be used instead of the strata building bond, offering a first-resort pathway for relevant defects in prescribed common-property elements.
View NSW Government informationVictoria’s developer bond scheme commenced in 2026, with qualifying decennial liability insurance recognised as an alternative pathway for certain apartment developments.
View Victorian Government informationThe ACT is introducing a licensing and accountability framework for residential property developers, with relevant developers required to be licensed from 1 October 2026.
Relevant latent defects insurance may be considered in specified regulatory circumstances.
View ACT Government informationProduct availability, policy scope and regulatory requirements depend on the jurisdiction and final approved insurance arrangements. Confirm project-specific requirements for the relevant jurisdiction.
Information current at September 2026.
Early engagement helps align underwriting, technical inspection and project delivery.
Talk to Index