ACT’s 180-day home warranty claim time limit starts when the homeowner becomes aware that the builder has become insolvent, has died or disappeared, according to the ACT Government’s residential building work insurance guidance. From 1 January 2025, the ACT Government increased the minimum insurance amount from $85,000 to $200,000 and the time limit for lodging a claim from 90 days to 180 days (figures checked 1 October 2026).
The key date to document is when the homeowner becomes aware of the builder’s insolvency, death or disappearance. The homeowner should then check the policy’s PDS and follow its claim procedure within the applicable time limit.
What changed on 1 January 2025?
The ACT Government made two changes to residential building work insurance:
| Requirement | Previous amount or period | From 1 January 2025 |
|---|---|---|
| Minimum insurance amount | $85,000 | $200,000 |
| Time limit to lodge a claim | 90 days | 180 days |
These changes followed the ACT Government’s review of the minimum insurance amount, claim time limits and insurance period. The $200,000 amount is the minimum insurance amount; it is not a statement about the amount payable for every claim.
When does the 180-day period start?
The ACT Government states that the time limit commences when the homeowner becomes aware that the builder has:
- become insolvent;
- died; or
- disappeared.
The relevant date is therefore when the homeowner becomes aware of the event, rather than simply when the builder’s financial trouble or absence becomes public. Record that awareness date and keep supporting records, then check the PDS for how and where to lodge the claim.
Which building work must be insured?
Building work on houses and apartment buildings with three storeys or fewer, not counting a car park, must be covered by residential building work insurance. The ACT Government also calls this cover home warranty insurance or builder’s warranty insurance.
The insurance covers the current owner and future owners if the building is sold.
Who can provide residential building work insurance?
Residential building work insurance must be provided through either:
- a policy issued by an authorised insurer; or
- a fidelity certificate issued by an approved fidelity fund scheme.
The ACT Government currently identifies QBE Insurance as the only authorised insurer providing residential building work insurance in the ACT. The Master Builders Fidelity Fund is the only approved fidelity fund scheme under the Building Act 2004.
The Master Builders Fidelity Fund is a private-sector managed not-for-profit enterprise, not a government business. The ACT Government says it has a regulatory oversight function.
Who is responsible for obtaining and checking the insurance?
| Responsible party | Required action |
|---|---|
| Builder | Obtain the insurance before applying to the certifier for a building commencement notice and before starting building work. |
| Builder | Provide the owner with evidence of the insurance. |
| Owner | Check that the policy or fidelity fund certificate is complete and accurate, including the cost of the work and the builder’s name. |
| Building certifier | Verify that insurance is in place before issuing the building commencement notice. |
What should a homeowner do after becoming aware?
After becoming aware that the builder is insolvent, has died or has disappeared, the homeowner should:
- Record when that awareness occurred and which event triggered it.
- Read the policy PDS or fidelity certificate for the claim terms and lodging procedure.
- Lodge the claim within the applicable deadline.
- Check the ACT Government page for the current insurance requirements.
This is general information, not financial or legal advice. Check the ACT Government regulator page and your policy’s PDS for current requirements and the correct claim procedure.
Sources
FAQ
When does the ACT’s 180-day claim time limit begin?
It begins when the homeowner becomes aware that the builder has become insolvent, has died or has disappeared.
Was the claim time limit always 180 days?
Before 1 January 2025, the time limit to lodge a claim was 90 days. From 1 January 2025, it increased to 180 days.
Who must obtain residential building work insurance?
The builder must obtain it before applying to the certifier for a building commencement notice and before starting the building work.
What should the homeowner check on the insurance document?
Check that it is complete and accurate, particularly the cost of the work and the builder’s name. The builder must also provide evidence of the insurance.
Does the insurance continue if the building is sold?
The ACT Government states that the insurance covers both the current owner and a future owner if the building is sold.
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