A group representing Australian residential home builders has voiced its frustration at members’ ongoing difficulty in sourcing builders’ warranty insurance in Victoria.

Builders Collective of Australia National President Phil Dwyer says many builders are “in limbo” as they try to source the cover, which is compulsory on all major domestic works.

It follows the Victorian Government’s announcement in March that it will step in to take over domestic building insurance through the Victorian Managed Insurance Authority (VMIA).

But Mr Dwyer says the VMIA is “nowhere near” providing cover, despite the Government’s assertion it would be available from March 31.

The decision to underwrite builders’ warranty insurance followed the withdrawal from the market of Vero, CGU and Lumley. Only QBE and Calliden remain as significant private sector providers of the cover in Australia.

“The VMIA are trying to negotiate with the current insurers to stay in the market until they are in a position to provide it,” Mr Dwyer said.

Efforts this morning by insuranceNEWS.com.au to discuss the issue with the VMIA and private sector insurers were unsuccessful.