Home Warranty Coverage in the ACT: What's Actually Covered (And What's Not)

Building or renovating in Canberra is one of the biggest financial commitments most people will ever make. Yet home warranty coverage in the ACT remains widely misunderstood. Knowing how the Fidelity Fund works, including what it does not cover, could save you from costly surprises.

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Many homeowners assume their coverage is broader than it actually is, only to discover the gaps when something goes wrong. The Master Builders Fidelity Fund steps in when a builder dies, disappears, or becomes insolvent. It is not a general construction insurance policy, and that distinction matters. You can use the Certificate Lookup to confirm your builder's coverage before any work begins.

The Fidelity Fund is not home insurance

This is the single most important distinction for any homeowner or builder to understand. The Master Builders Fidelity Fund is not general home and contents insurance. It will not pay out for storm damage, fire, theft, or routine maintenance issues.

The home owners' warranty insurance ACT framework is a last-resort safety net that only activates in specific, legislated circumstances. Under the Building Act 2004 (ACT), a claim can only be made when a licensed builder can no longer complete their obligations due to one of three trigger events:

Death of the builder
Insolvency of the builder
Disappearance of the builder (genuinely untraceable, not merely difficult to contact)

Outside of these events, the Fund does not apply, regardless of how serious the dispute or defect may be. The Fidelity Fund is the only approved certificate provider in the ACT, with over 24 years of experience and more than 40,000 builds protected.

What the Home Warranty Insurance ACT actually covers

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The $200,000 Maximum Cover

The maximum cover under the home warranty insurance ACT framework is $200,000 per dwelling, or an amount equal to the cost of the work, whichever is lesser. This cap was significantly increased from $85,000 to $200,000 on 1 January 2025.

Deposit protection

Under the Building (General) Regulation 2004 (ACT), homeowners can claim up to $10,000 for a deposit paid to a builder if a trigger event occurs before or during construction.

The limits on progress payment cover

The Master Builders Fidelity Fund does not cover overpayments or amounts you've paid ahead of the value of work actually completed. If you have paid ahead of schedule and the builder subsequently dies, becomes insolvent, or disappears, those overpaid funds fall outside the Fund's cover . See the frequently asked questions or homeowners section for detail.

What is not covered?

Knowing the exclusions is just as important as knowing the entitlements. The Fidelity Fund does not cover:

Disputes with a builder who is still operating
Defects or poor workmanship unless a trigger event has occurred
Class 10 structures, including standalone garages, carports, pergolas, fences, and pools, even when they form part of a larger project
Owner-builder projects
Non-structural renovations under $12,000 that do not require Building Approval
The first $500 of any claim, which is the excess fee (this is refundable if the claim is declined)

If you are uncertain about your specific project, the FAQs are a good starting point, or you can contact the team directly.

Eligibility and certificate requirements

A Fidelity Fund certificate is required under the Building Act 2004 before a Commencement Notice can be issued and before work begins on site. It is the builder's responsibility to obtain the certificate, not the homeowner's. Commencing work without one is an offence under both the Building Act 2004 and the Construction Occupations (Licensing) Act 2004.

Certificates are generally required for:

New homes: Class 1 dwellings and Class 2 multi-unit buildings up to three storeys
Additions and alterations valued at $12,000 or more that require Building Approval

Cover runs for 5 years from completion and is linked to the property, so future owners are also protected within the statutory period. Check the for homeowners page if you are unsure whether your project qualifies.

For builders

Licensed builders must hold a valid Fidelity Fund certificate for each eligible residential project in the ACT. The for builders page covers the application process and certificate management through the builder portal.

How to make a claim

A claim can only be lodged after a trigger event is confirmed, and homeowners must first exhaust all legal remedies against the builder. Time limits apply:

Certificates before 1 January 2025: 90 days from becoming aware of the trigger event
Certificates from 1 January 2025: 180 days from becoming aware of the trigger event

Claims are submitted by reaching out to the Fidelity Fund Officer on fidelityfund@mba.org.au, and may take up to 90 days to process. A building consultant may be appointed to inspect defective work and prepare a supporting report. The full process is outlined on the how it works page.

Quick reference: key figures

$200,000: maximum cover per dwelling (certificates from 1 January 2025)
$85,000: maximum cover for certificates before 1 January 2025
$10,000: maximum deposit protection
$500: claim excess (refundable if declined)
$12,000: minimum threshold for additions and alterations
5 years: duration of coverage from completion
90 days: claim window for certificates before 1 January 2025

Independent oversight you can rely on

The Fidelity Fund was established under ACT legislation to serve consumers, not to generate profit. It operates with a dedicated consumer representative on its board and is backed by Master Builders ACT, the territory's peak construction body, with over 170 claims processed to date.

You can look up an existing certificate online, or review the Fund's privacy policy and complaints policy if needed.

About the Master Builders Fidelity FundThe Master Builders Fidelity Fund is the ACT's sole approved certificate provider. With over 24 years of operation and 2,000+ builders covered, the Fund delivers personalised support at every stage of the residential building process.Whether you are a homeowner seeking clarity or a builder meeting your legal obligations, the team is ready to help.‍Enquire with the Fidelity Fund today.