Yes. The ACT Government’s residential building work insurance guidance says 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 (figures checked 1 October 2026). Also called home warranty insurance or builder’s warranty insurance, the cover must be obtained by the builder before applying to the certifier for a building commencement notice and before starting work, and the builder must give the owner evidence. The ACT Government’s guidance states that, from 1 January 2025, the minimum insurance amount increased from $85,000 to $200,000, while the period for lodging a claim increased from 90 days to 180 days.
What is residential building work insurance?
In the ACT Government’s terminology, residential building work insurance, home warranty insurance and builder’s warranty insurance are names for the same requirement.
The required document must be either:
- an insurance 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).
At the check above, the ACT Government page identified QBE Insurance as the only authorised insurer providing this cover in the ACT and the Master Builders Fidelity Fund as the only approved fidelity fund scheme under the Building Act 2004. The Government describes the Fund as a private-sector managed not-for-profit enterprise, not a government business, although the ACT Government has a regulatory oversight function.
Does the rule cover both houses and apartments?
| Building type | ACT requirement |
|---|---|
| House | Building work with three storeys or fewer must be covered by residential building work insurance. |
| Apartment building | Building work with three storeys or fewer must be covered by residential building work insurance. |
| Car park | A car park is not included when counting storeys. |
What must the builder do before work starts?
The builder must complete these actions:
- Obtain the insurance policy or fidelity fund certificate.
- Obtain it before applying to the certifier for a building commencement notice.
- Have the insurance in place before starting building work.
- Provide the owner with evidence of the insurance.
The building certifier must also check that the required insurance is in place before issuing the building commencement notice to the builder.
What should the owner check?
The owner should check that the insurance policy or fidelity fund certificate is complete and accurate. In particular, check that it shows:
- the cost of the work; and
- the builder’s name.
The insurance covers the current owner and future owners if the building is sold.
What changed on 1 January 2025?
| Item | Dated rule |
|---|---|
| Minimum insurance amount | Increased from $85,000 to $200,000 from 1 January 2025. |
| Time allowed to lodge a claim | Increased from 90 days to 180 days from 1 January 2025. |
The claim time limit begins when the homeowner becomes aware that the builder has become insolvent, died or disappeared.
What should readers verify before relying on the cover?
Requirements and provider arrangements can change. This is general information, not financial or legal advice. Check the ACT Government regulator page for the current requirements and read the policy’s PDS for policy-specific terms. If the cover is provided through a fidelity fund scheme, check the certificate and the scheme’s approval criteria.
Sources
FAQ
Does a car park count towards the three-storey limit?
No. A car park is excluded when counting the storeys of a house or apartment building.
Are home warranty insurance and builder’s warranty insurance separate products?
No. The ACT Government uses both terms as alternative names for residential building work insurance.
Who must obtain the insurance?
The builder must obtain it before applying for the building commencement notice and before starting building work, then provide evidence to the owner.
What evidence should the owner receive?
The builder must provide evidence of the insurance. The owner should check that the policy or fidelity fund certificate accurately shows the work cost and builder’s name.
When does the claim lodgement period start?
The period that applies from 1 January 2025 is 180 days. It begins when the homeowner becomes aware that the builder has become insolvent, died or disappeared.
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