Can I Use a BIC for Insurance Purposes?

If you’ve built something without council approval or purchased a property with unapproved structures, you might be wondering whether a Building Information Certificate (BIC) can help with your insurance.

You're not alone, this is a common question we get from clients across NSW.

Here’s everything you need to know, from a town planning and compliance perspective.

1. What is a Building Information Certificate (BIC)?

A BIC is issued by your local council to confirm that an existing building (or part of a building) will not be subject to any demolition or upgrade orders for at least 7 years.

It’s often used when structures have been built without prior DA approval or where there is uncertainty about compliance with NSW planning laws.

A BIC does not retrospectively approve unlawful work, but it gives formal recognition that the council will take no further action, at least for the time frame specified.

2. Why Would You Need a BIC for Insurance?

Homeowners and investors often ask about BICs when renewing or applying for home insurance or property insurance.

That’s because some insurers require evidence that all structures on a property comply with local development application requirements.

If there’s an unauthorised granny flat, garage or extension, a BIC can show the council has reviewed the building and is satisfied it meets basic planning and safety standards.

This gives insurers greater confidence when providing cover.

3. A Real-World Example: Carport Cover for Insurance

We recently helped a homeowner in Parramatta who had bought a house with a carport built years ago without council approval.

The structure was sound, but it didn’t have a development application record.

Their insurer flagged it during a policy renewal and asked for proof that it wouldn’t be subject to removal or enforcement.

We guided them through the BIC process, including preparing the required documents, organising a survey and dealing with council.

Once the BIC was issued, the insurer was satisfied, and the client kept their full policy coverage.

4. When a BIC Might Not Be Enough

While a BIC can help with insurance, it’s not always the full solution.

Some insurers may still request an engineer’s report or building certification, especially if the work is non-compliant or poorly constructed.

A BIC only protects you from council enforcement, not from future claims related to defects or safety issues.

That’s where solid planning advice from a qualified planning consultant is critical.

We can help assess whether the structure meets the NSW planning framework and what supporting documents you’ll need for council or your insurer.

5. Can I Get a BIC Without a DA Approval?

Yes.In most cases, a BIC is used specifically when no DA approval exists.

It is an alternative pathway for owners looking to rectify non-compliance without lodging a full development application.

However, some councils may still request additional documents such as site plans or construction details.

This is where our in-house drafting team can help.We regularly prepare architectural plans and building documentation to support BICs and council approval applications across NSW.

6. Planning Advice Before You Apply

If you’re unsure whether you need a BIC or if it will meet your insurer’s requirements, get expert planning advice first.

At Town Planning Sydney, we help homeowners, buyers and developers across NSW navigate complex issues with clarity.

We combine deep knowledge of NSW planning policy with practical experience managing council submissions, fast-tracking BICs and avoiding costly mistakes.