Residential building work insurance is required for building work on houses and apartment buildings that are three storeys and below, not counting a car park, according to the ACT Government’s City and Environment Directorate – Planning. From 1 January 2025, that guidance sets the minimum insurance amount at $200,000 and the time limit to lodge a claim at 180 days; figures checked 1 October 2026.
Which buildings and projects need residential building work insurance?
The core ACT description is:
| Point | ACT guidance |
|---|---|
| Building type | Building work on houses and apartment buildings |
| Storeys | Three storeys and below, not including a car park |
| Builder’s deadline | The builder must obtain insurance before applying to the certifier for a building commencement notice and before starting building work |
The ACT Government’s Hiring a builder guidance also says work over $12,000 on some residential buildings must have residential building work insurance or a fidelity fund certificate before it commences.
The official pages do not explain every interaction between the $12,000 wording and the house, apartment and storey description. A borderline project should therefore be checked with the regulator rather than treated as automatically included or excluded. The $12,000 project-value reference should not be confused with the $200,000 minimum insurance amount.
Who can provide the policy or fidelity fund certificate?
Cover must take one of two forms:
- A policy issued by an authorised insurer in accordance with section 90 of the Building Act 2004; or
- A fidelity certificate issued by an approved fidelity fund scheme under the scheme’s approval criteria.
An authorised insurer is a body corporate authorised to carry on insurance business under the Insurance Act 1973 (Cwlth).
The regulator’s current provider list identifies:
| Route | Provider | Current ACT status |
|---|---|---|
| Authorised insurer | QBE Insurance | The only authorised insurer providing residential building work insurance in the ACT |
| Approved fidelity fund scheme | Master Builders Fidelity Fund | The only approved fidelity fund scheme under the Building Act 2004 |
Despite its name, the Master Builders Fidelity Fund is a private-sector managed not-for-profit enterprise, not a government business. The ACT Government has a regulatory oversight function for it.
Check the regulator’s page before relying on this provider list, as an insurer’s authorisation or a scheme’s approval can change.
What does residential building work insurance cover?
The public ACT guidance gives a high-level answer rather than the full policy terms:
| Point | What the guidance says |
|---|---|
| Minimum insurance amount | $200,000 from 1 January 2025 |
| Ownership | Cover applies to the current owner and future owners if the building is sold |
| Incomplete work | The maximum amount claimable under the project insurance is currently $10,000 if the work is not completed |
| Separate homeowners warranty insurance | This covers only up to $10,000 for deposits and is not residential building work insurance under the Building Act 2004 |
Residential building work insurance is also called home warranty insurance or builder’s warranty insurance. That label should not be confused with a separate product called homeowners warranty insurance.
The $200,000 figure is the minimum amount of insurance, not a premium quote or an automatic claim payout. The public guidance does not set out every covered defect or loss, exclusion, excess, limitation or claim document. Those details need to be checked in the policy’s PDS and, where relevant, the fidelity certificate and applicable scheme criteria.
How long do owners have to claim, and when does the time start?
The ACT Government gives these dates for the change:
| Period | Minimum insurance amount | Time limit to lodge a claim |
|---|---|---|
| Before 1 January 2025 | $85,000 | 90 days |
| From 1 January 2025 | $200,000 | 180 days |
These changes followed the ACT Government’s 2024 review of its residential building work insurance rules. The review report made 12 recommendations, which the Government agreed to, and was tabled in the Legislative Assembly in June 2024.
The time limit commences when the homeowner becomes aware that the builder has become insolvent, has died or has disappeared. The published guidance identifies that awareness as the starting event; it does not identify contract signing, practical completion or handover as the start of the 180-day period.
The guidance provides a deadline for lodging a claim but does not set out a separate period for investigating or resolving it. Owners should therefore check the lodgement requirements in the policy or scheme documents rather than assuming there is extra time after the deadline.
What does the certifier check before work starts?
For work requiring residential building work insurance:
- The builder must obtain the policy or fidelity certificate before applying for the building commencement notice and starting work.
- The builder must give the owner evidence of the insurance.
- The building certifier must check that insurance is in place before issuing the building commencement notice to the builder.
The published certifier requirement is specifically to verify that insurance is in place. It does not state that the certifier assesses every policy condition or decides whether a later claim is payable.
The owner should also check that the policy or certificate is complete and accurate, particularly the builder’s name and the cost of the work. That is a separate owner check, not something the guidance says the certifier must verify.
Who appoints the building certifier?
Where building work requires a building approval and an independent certifier, the landowner is responsible for appointing the certifier.
A residential building contract must not give the builder the right to appoint the certifier or act as the homeowner’s agent when dealing with the certifier. A builder or another person may appoint the certifier, but that arrangement must be set out in a separate written agreement.
What should an owner check before signing?
Before work starts, owners should:
- Obtain a copy of the insurance policy or fidelity fund certificate.
- Check that the builder’s name, project cost and other details are complete and accurate.
- Ensure the written contract allows fair termination if the builder cannot obtain the required insurance within the prescribed time.
- Read the contract clauses, obligations and rights before signing. There is no ACT legislative requirement for a written residential building contract, but it is strongly recommended.
- Remember that the ACT has no mandatory cooling-off period for building contracts.
- Seek independent legal advice if any term is unclear or needs to be added or changed.
This is general information, not financial or legal advice. Check the ACT Government regulator page for the current requirements and provider status, and read the policy’s PDS before signing or making a claim.
Sources
- Residential building work insurance - City and Environment Directorate - Planning
- Hiring a builder - City and Environment Directorate - Planning
FAQ
Does a fidelity fund certificate satisfy the ACT insurance requirement?
Yes. The permitted alternative to an authorised insurer’s policy is a fidelity certificate issued by an approved fidelity fund scheme under its approval criteria. The regulator currently identifies the Master Builders Fidelity Fund as the ACT’s only approved scheme.
Does the insurance continue if the home is sold?
The ACT guidance says residential building work insurance covers the current owner and future owners if the building is sold to another party.
Does the 180-day claim period start at completion?
The published starting event is when the homeowner becomes aware that the builder has become insolvent, has died or has disappeared. The guidance does not state that the period starts at practical completion or handover.
What must the certifier check?
For work requiring insurance, the certifier must check that insurance is in place before issuing the building commencement notice. The guidance does not state that the certifier checks every policy detail or determines later claims.
Is homeowners warranty insurance a substitute?
No. The ACT guidance says homeowners warranty insurance covers only up to $10,000 for deposits and is not residential building work insurance under the Building Act 2004.
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