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ACT reviewing home warranty cover

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The ACT Government is reviewing its home warranty cover arrangements to ensure they are providing the right level of protection for people building and renovating homes.

The review will examine application and approval processes, insurance settings, such as a potential increase in the minimum amounts, scope of cover, prudential standards and reporting obligations.

Minister for Sustainable Building and Construction Rebecca Vassarotti says the review is expected to be completed by the middle of next year.

“While other states have seen their home warranty cover struggle to provide protection at times, and face rising costs, the ACT warranty scheme has remained sound,” Ms Vassarotti said.

“However, it’s timely to review it and ensure we can be confident that the ACT’s home warranty cover provides the right level of protection for people who are building and renovating their homes.”

The ACT arrangements include the Master Builders Fidelity Fund, which was established in 2002.

Master Builders Association (MBA) CEO Michael Hopkins says it’s timely that the ACT Government reviews the system to ensure it’s responding to increasing contract values and more complex residential building types.

“The MBA looks forward to working cooperatively on a review of the home warranty system to ensure it remains fit for purpose and continues to provide adequate consumer protection whilst also remaining affordable,” he said.

An ACT Building Quality Inquiry report completed in 2020 recommended a review of the fidelity fund, and that the review should look at the potential to expand cover so owners’ corporation executive committees could make claims for common areas.

Scoping work for the review is still being completed, with the final approach to be determined.