Victoria has moved to allow building surveyors to hold professional indemnity (PI) cover with a cladding exclusion.

The change, which comes into effect on August 12, was announced by Planning Minister Richard Wynne.

It follows similar moves by the NSW and Queensland governments after Landmark Underwriting, the last provider of exemption-free PI cover, pulled out of the market  this month.

Building surveyors and certifiers in the three states are required by law to have PI cover free of exclusions to operate.

But the flammable cladding crisis has prompted insurers to demand exclusions that will limit their risk exposure to the dangerous materials found in many buildings in Australia.

The changes in Victoria will apply also to building inspectors, quantity surveyors, engineers and draftspeople.