According to the ACT Government’s City and Environment Directorate—Planning residential building work insurance guidance, building work on houses and apartment buildings with three storeys or fewer, not including a car park, must be covered by residential building work insurance; from 1 January 2025, the minimum insurance amount is $200,000 and the time to lodge a claim is 180 days (figures checked 1 October 2026). The 180-day clock starts when the homeowner becomes aware that the builder has become insolvent, has died or has disappeared. Cover must come through either an authorised insurer or an approved fidelity fund scheme.
What building work needs insurance in the ACT?
Residential building work insurance is also called home warranty insurance or builder’s warranty insurance.
| Project type | ACT requirement described in the guidance |
|---|---|
| House | Building work on a house with three storeys or fewer must be covered |
| Apartment building | Building work on an apartment building with three storeys or fewer must be covered |
| Car park | A car park is not included in the stated building scope |
The requirement concerns the building work, not merely whether the property is insured by a standard home policy.
Can an authorised insurer or fidelity fund provide the cover?
The ACT Government says the insurance must take one of two forms:
| Route | Required document | Legal or scheme requirements | Provider listed in the checked guidance |
|---|---|---|---|
| Authorised insurer | Insurance policy | Issued by an authorised insurer in accordance with section 90 of the Building Act 2004 | QBE Insurance |
| Approved fidelity fund scheme | Fidelity certificate | Issued in accordance with the approval criteria for a fidelity fund scheme | Master Builders Fidelity Fund |
An authorised insurer is a body corporate authorised to carry on insurance business under the Insurance Act 1973 (Cwlth). The checked ACT Government guidance lists QBE Insurance as the only authorised insurer currently providing residential building work insurance in the ACT.
The same guidance lists the Master Builders Fidelity Fund as the only approved fidelity fund scheme under the Building Act 2004. It is a private-sector managed not-for-profit enterprise, not a government business, although the ACT Government has a regulatory oversight function.
What changed from 1 January 2025?
The ACT Government identifies the following changes:
| Requirement | Before 1 January 2025 | From 1 January 2025 |
|---|---|---|
| Minimum insurance amount | $85,000 | $200,000 |
| Time allowed to lodge a claim | 90 days | 180 days |
The $200,000 figure is the minimum insurance amount, not a premium quote or a direction to price every project at that amount. The cost of work stated on the policy or fidelity certificate still needs to accurately reflect the job.
The ACT Government finalised its review of the territory’s residential building work insurance rules in 2024. The review covered the minimum insurance amount, claim lodgement time and period of insurance. Its report made 12 recommendations, which Government agreed to, and was tabled in the Legislative Assembly in June 2024.
When does the 180-day claim period start?
The stated trigger is when the homeowner becomes aware that the builder has:
- become insolvent;
- died; or
- disappeared.
Once the homeowner becomes aware of one of those events, the 180-day period to lodge the claim begins. This is a claim lodgement period, not a promised timeframe for assessment or resolution.
What must the builder do before work starts?
| Responsible party | Obligation | Timing |
|---|---|---|
| Builder | Obtain the insurance policy or fidelity fund certificate | Before applying to the certifier for a building commencement notice and before starting building work |
| Building certifier | Check that insurance is in place | Before issuing the building commencement notice |
| Builder | Provide the owner with evidence of the insurance | The cited guidance requires this but does not set a separate deadline for the handover |
The builder is responsible for obtaining the required cover. The owner should not assume that applying for the building commencement notice or beginning work will substitute for insurance.
What should an owner check?
A person engaging a builder should check that the insurance policy or fidelity fund certificate is complete and accurate, particularly:
- the cost of the work;
- the builder’s name; and
- the other details shown on the document.
The insurance covers the current owner and future owners should the building be sold to another party.
Requirements and provider availability can change. Check the ACT Government regulator page for the current position and, where an insurer policy is used, the policy’s Product Disclosure Statement (PDS). This is general information, not financial or legal advice.
Sources
FAQ
Does a separate car park count towards the three-storey limit?
No. The cited ACT requirement describes houses and apartment buildings with three storeys or fewer, not including a car park.
Does the $200,000 minimum mean every project must be worth at least $200,000?
No. It is the minimum insurance amount, not a stated project value or premium. The cost of work recorded on the policy or certificate should be complete and accurate.
Who must obtain the insurance before work begins?
The builder must obtain it before applying to the certifier for a building commencement notice and before starting building work. The certifier must then check that the insurance is in place before issuing the notice.
When does the 180-day claim period begin?
It begins when the homeowner becomes aware that the builder has become insolvent, died or disappeared. The period concerns lodging the claim.
What if the contract or work began before 1 January 2025?
The cited ACT guidance does not state how the 1 January 2025 change applies to contracts or work that began earlier. Check the regulator page, the contract and the policy’s PDS for the applicable position.
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