The Victorian Managed Insurance Authority says it will review its broker panel for builders’ warranty cover next year, after ejecting Insurance House from the current list of approved distributors.

In 2021, VMIA confirmed five panel brokers on a two-year term: Insurance House, Bovill Risk & Insurance Consultants, CCM Insurance Group, HIA Insurance Services and Master Builders Insurance Brokers. They were all reappointed for a further two years in 2023.

But as insuranceNEWS.com.au has reported, Insurance House was suddenly removed from the panel last week. VMIA declined to give reasons for the move “due to the terms of the distributor agreement”.

“Impacted builders have been contacted directly and asked to nominate another distributor from the approved panel by July 31,” a VMIA spokesperson said.

“A dedicated helpline and email support has been set up for builders, to answer any questions and provide assistance during the transition.”

VMIA says policies taken out through Insurance House are still valid, and there will be no impact on homebuyers.

Each year more than 70,000 builders’ warranty policies – also called domestic building insurance – are taken out across Victoria.

Builders are required to buy the cover on behalf of homeowners for all domestic construction projects valued above $16,000. Homeowners can make a claim if their builder dies, disappears or becomes insolvent.

VMIA says the decision to remove Insurance House is “final”, but this does not stop it being considered at future panel reviews.

Insurance House continues to distribute builders’ warranty cover in other states. Steadfast, which owns Insurance House, declined to comment.