Introduction
In the Northern Territory (NT), owners of new homes must have residential building cover as protection from defective or incomplete work.
New homes in this instance include duplexes, units in complexes up to three storeys in height excluding undercroft or underground parking levels, and extensions or renovations to those buildings.
The Building Act sets out the requirements for residential building insurance. Read the Building Act 1993.
Read about getting a fidelity fund certificate for residential building works, including extensions or renovations carried out since 2013.
Read about the home building certification fund, the scheme for insuring residential building work between 1993 and 31 December 2012.
Fidelity fund certificate
Legislative framework reforms from 30 March 2026
Reforms to legislative framework to remove unnecessary compliance costs to low-risk constructions projects and relating to consumer protections commenced on 30 March 2026.
Key amendments include increasing the:
- minimum prescribed value that triggers the need of a fidelity certificate from $12,000 to $25,000
- timeframe for cover of non-completion of work to recognise any approved extension to a building permit
- timeframe for making a claim, allowing them to be made within 90 days of either becoming aware of a defect or a trigger event occurring.
These amendments will only apply to fidelity certificates issued after 30 March 2026, as being applied retrospectively would change the liability of issued certificates for future claims and could impact on the financial position of the Fidelity Fund NT.
This page has information for people doing building work prescribed by law in the Northern Territory (NT) who need residential building cover for defective or incomplete building works.
Residential building cover is issued in the form of a fidelity fund certificate.
This cover is for residential building work only, not for commercial or transportable buildings or government contracts.
The cover is similar to home warranty insurance cover in other states.
The previous Home Building Certification Fund was replaced by residential building cover in the form of fidelity fund certificates on 1 January 2013.
What is covered
A fidelity fund certificate covers owners against the following costs if a builder becomes bankrupt, dies, disappears or has their registration cancelled by the Building Practitioners Board:
- costs associated with transitioning to a new builder to complete the work
- costs of rectifying non-structural defects in the first year after completion
- costs of rectifying structural defects for six years after completion.
Fidelity fund certificates give consumer protection rights to owners of new homes including all the following:
- duplexes
- units in complexes up to three storeys in height excluding undercroft or underground parking levels
- renovations and extensions to those buildings.
Building work that requires cover
You must apply for a fidelity fund certificate for prescribed residential building works.
Prescribed residential building work includes all the following:
- building a new home
- units in complexes up to three storeys in height excluding undercroft or underground parking levels
- renovations and extensions to the buildings above
- building work worth over $25,000 that increases the residential floor area of a property.
Type of work | Fidelity fund certificate needed |
|---|---|
House | Yes |
Duplexes and townhouses | Yes |
Conversion of shed to house, or enclosure of a carport to form a habitable room | Yes |
Prefabricated house | No |
Flats less than three storeys excluding undercroft or underground parking levels | Yes |
Flats greater than three storeys excluding undercroft or underground parking levels | No |
Additions and extensions to:
| Yes, for works over $25,000 that increase the floor area |
Garden sheds and fences | No |
Bathroom renovation | No, unless completed in conjunction with other work to a building that does require a fidelity fund certificate |
Bed and breakfast | Yes, unless the building is to be classified as a Class 1b building. Contact your building certifier to discuss your requirements. |
Retaining wall separate from and not supporting a residential building | No |
Retaining wall for a residential building structure | Yes |
Requirements for builders
Registered builders must apply to the fidelity fund for an annual level of cover.
If you a registered builder in the NT, you must show that you have the financial capability and experience for the level of cover you want.
On behalf of their clients, builders must also get a fidelity fund certificate for every job that includes prescribed residential building work.
You must have a fidelity fund certificate before you can get a building permit for prescribed residential building work, and before you demand payment from an owner.
Requirements for owner builders
Owner builders must have a fidelity fund certificate to cover future owners for building defects.
Cover is only available after the property is sold or transferred and if the owner builder becomes bankrupt, dies, disappears or has their registration cancelled by the Building Practitioners Board.
How to apply
Contact Fidelity Fund NT to get a fidelity fund certificate.
Fidelity Fund NT is currently the only provider in the NT and manages the fidelity fund.
Website
Phone
(08) 8922 9680
Post
11/396 Stuart Highway
Winnellie NT 0820
Building disputes and complaints
If your builder has not died, disappeared, become insolvent or been deregistered, you can't make a fidelity fund claim. Contact the Commissioner for Residential Building Disputes to mediate or make decisions about rectifying or completing work on your property.
Read more about building complaints and disputes.