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AAP
AAP
Politics
Callum Godde

Hefty fines for dodgy builders as 'loophole' closes

About 1700 homes in Victoria and Queensland were left in limbo when Porter Davis this year. (Jono Searle/AAP PHOTOS)

Builders who fail to take out domestic insurance for paid-up Victorian buyers will be hit with tough penalties after hundreds of people were caught out by the collapse of Porter Davis.

Legislation introduced to parliament on Tuesday would create offences for builders who fail to immediately take out insurance with the Victorian Managed Insurance Authority after customers pay their deposit.

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