Incomplete works cap (home warranty)

An incomplete works cap is a separate sub-limit within a home-warranty policy, for example 20% of the contract price under Victorian Domestic Building Insurance, that caps how much can be claimed for completing a build the original builder did not finish. It is distinct from the pool available for defect rectification.

Home-warranty cover (DBI in Victoria, HBCF in NSW, and the others) responds when a builder dies, disappears, becomes insolvent, or otherwise cannot finish or fix the work. The cover is not one undifferentiated pot:

• A non-completion claim is to finish a build the builder walked away from part way through.
• A defect claim is to rectify defective or non-compliant work.

The incomplete works cap limits the non-completion side. Under VIC DBI it is commonly set at around 20% of the contract price, on the logic that the homeowner has typically only paid for the work done so far, so the policy tops up the cost of getting a replacement builder to complete, rather than funding the whole remaining contract.

For a builder and a homeowner the practical point is to understand that home-warranty cover is limited, not a guarantee the project finishes for free. The completion cap can fall well short of the real cost of bringing in a new builder mid-job (a replacement builder prices an unfinished, unfamiliar job at a premium), and the defect and completion limits are separate. That is one of the strongest arguments for staged payments that never run ahead of work done: if the builder fails, the gap between what you have paid and what the cap covers is what you wear. See DBI (Vic) and the move to a first-resort scheme.

Also known as: Non-completion sub-limit, completion cap.

Category: Insurance / Home warranty.

Related

• DBI (Vic)
• Domestic Building Insurance (Vic)

See also

• First-resort scheme

References

• DBI (Vic) (Chalkline) (verified 2026-06-01)

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Last updated: 2026-06-01. Verified: 2026-06-01. Quarterly review for currency.