The Victorian Government is extending its scheme to help people stranded by insolvent home builders that failed to take out insurance on their behalf, as required by law.

The state announced last year that it would assist 560 Porter Davis customers, later adding affected customers of Snowdon Developments and Hallbury Homes.

It says 100 more Victorians may now be eligible for payments after the $13.55 million scheme was last week broadened to cover customers of builders that entered liquidation this financial year – from last July 1 until February 20 – including Montego Homes.

The Government has announced reforms to ensure consumers are covered by insurance before they provide money to builders under contracts for domestic construction work costing more than $16,000.

New offences introduced last month can lead to penalties of up to $96,000 on an individual or $480,000 on a company if a builder receives money without holding the required domestic building insurance.

“We are supporting families who have been left stranded through no fault of their own – and putting builders on notice: new penalties apply to individuals and companies that fail to take out domestic building insurance,” Assistant Treasurer Danny Pearson said.

“We urge all customers to check that their builder has taken out insurance – as all builders are obliged to – through the Victorian Managed Insurance Authority policy checker.”

Applications for the extended scheme are expected to open in coming weeks. 

More details are available here.