If DLI is made mandatory, certain buildings would be exempt:

• build-to-rent properties (purpose-built properties with a single owner and professionally managed)
• smaller class 2 buildings that are three storeys or less (these will remain subject to the Home Building Compensation Fund* until DLI is mandated)
• existing buildings that are converted to a class 2.

*The Home Building Compensation Fund is available for smaller Class 2 buildings (three storeys or less). The Home Building Compensation Fund offers a safety net to homeowners if their builder is unable to complete building work or fix defects. Owners making a Home Building Compensation Fund insurance claim must go through several steps before a claim can be approved. In many cases, the insurance payout will not represent full compensation. Mandatory decennial liability insurance is proposed to cover these buildings currently covered by the Home Building Compensation Fund.