A 2023 builder collapse in Victoria left 1,700 homeowners homeless, exposing systemic failures in insurer response and prompting government reforms.

Porter Davis’ 2023 collapse—Victoria’s biggest—left 1,700+ families stranded and slammed the VMIA with a flood of claims. A watchdog found VMIA staff buckled under pressure, at times lashing out at homeowners with profanity and threats despite no fraud evidence. Some staff were also harassed and digitally stalked, fueling a toxic workplace. While many claims were handled quickly, others endured severe financial and emotional fallout. The government apologized, accepted all nine reform recommendations, and announced a $15 million rescue package for 560 uninsured homeowners, plus new penalties for builders who skip mandatory insurance.