How to Claim on Residential Building Insurance in the ACT

What it is

The Australian Capital Territory runs a residential building insurance framework under Part 6 of the Building Act 2004 (ACT). Two parallel routes deliver the compulsory cover: an authorised insurer policy under section 90 (currently QBE only), or a fidelity certificate from an approved scheme under section 91 (currently only the Master Builders Fidelity Fund).

Cover is compulsory for residential building work of $12,000 or more that requires building approval, on houses and apartment buildings up to 3 storeys (excluding car park levels). Minimum cover was raised to $200,000 (from $85,000) and the claim window to 180 days (from 90) on 1 January 2025.

Trigger events

Cover triggers under Part 6 and the scheme conditions are:

• the builder has died
• the builder has disappeared and cannot be found
• the builder is insolvent (bankruptcy or company insolvency)

Note that the ACT trigger set is narrower than WA's HII. Registration cancellation on non-insolvency grounds does not trigger ACT residential building insurance.

For a live defect complaint against a solvent, licensed builder, insurance is not the pathway. The remedy runs through Access Canberra investigation and rectification orders under the Construction Occupations (Licensing) Act 2004 (ACT), and ACAT for section 88 warranty claims.

Cover structure

• non-completion and defects: up to $200,000 (from 1 January 2025)
• deposit loss: $10,000

The $200,000 is a single overall cap covering non-completion and defects. Deposit loss is a separate $10,000 sub-limit. Whether the deposit cap rose with the 1 January 2025 changes is unresolved; official sources continue to cite $10,000 and TradeForm ACT templates assume $10,000 as the operative deposit cap.

Cover period is 5 years from completion for the fidelity certificate route and matches for insurer policies.

The 180 day claim window

The claim window is 180 days from the trigger event, raised from 90 days on 1 January 2025. That is a hard deadline. Missing 180 days can bar the claim regardless of the underlying defect or non-completion merit.

The window runs from the trigger event, not from when the owner learns of it. Owners who discover a builder's insolvency long after the fact may already be out of time. TradeForm ACT templates include a handover-pack note explaining the 180 day framework and prompting owners to lodge promptly on any trigger event.

The two routes: QBE policy or MBA Fidelity Fund

Section 90 of the Building Act 2004 (ACT) permits cover through an authorised insurer. Currently only QBE offers policies. Claims run to QBE directly through the standard insurer claim framework.

Section 91 permits cover through a fidelity certificate from an approved scheme. Currently only the Master Builders Fidelity Fund is approved. Claims run to the fund directly.

The two routes are equivalent in cover and in claim treatment; the difference is administrative. Builders choose the route that suits their business (typically MBA members use the fund; non-members use QBE).

How to lodge a claim

Claims are lodged with the operative provider. The claim requires:

• the certificate of insurance or fidelity certificate number
• proof of the trigger event (bankruptcy order, insolvency notice, disappearance evidence)
• description of non-completion, defect or deposit loss
• rectification or completion cost estimate with supporting quotes
• inspection or engineering reports where required

The provider assigns a claims officer, arranges an assessment and issues a determination. Owners have review rights through ACAT.

Section 88 warranty claims run in parallel

Section 88 statutory warranty claims (6 years structural, 2 years non-structural) run separately from the insurance claim. The warranty claim is against the builder personally, enforceable through ACAT. The insurance claim is against the provider, enforceable through the trigger event framework.

Where the builder is solvent and licensed, the insurance layer does not open. Where the builder becomes insolvent, both pathways are available: the section 88 claim goes into proof of debt in the insolvency, and the insurance claim covers the practical rectification or completion cost within the $200,000 cap.

How the ACT compares

ACT at $200,000 sits at the low end of Australian scheme caps but with the specific 180 day post-trigger notification cutoff. NSW HBCF: $340,000. VIC Home Warranty: $400,000 first resort. QLD QHWS: $200,000 per category (three categories). WA HII: $200,000 with a wider trigger set. SA BII: $250,000. NT Fidelity Fund: up to $200,000. Tasmania: no scheme.

The dual-route architecture (private insurer plus fidelity fund) is unusual. Every other Australian jurisdiction uses a single-route model, either private insurer, government insurer or fidelity fund. The ACT's dual-route framework gives builders flexibility and gives owners a choice of provider depending on the builder's affiliation.