QBCC declined 776 home warranty claims and approved 676 in 2025-26

Queensland home owners whose builder fails or leaves defects were more likely to be turned away than paid in 2025-26. The Queensland Building and Construction Commission (QBCC) declined 776 Home Warranty Scheme claims and approved 676. For builders and contractors, every approved claim can come back to them as a recovery debt.

Why it matters

The scheme is the safety net for people mid-build when a builder collapses, and for owners left with defective or unfinished work. Those owners are usually paying a mortgage and rent at the same time, with a half-built house in between.

QBCC’s annual report shows the safety net is catching fewer of them. Declined claims have now outnumbered approved claims in two consecutive years. The gap widened from 16 in 2024-25 to 100 in 2025-26.

The Good Builder, which first drew attention to the figures, reports that strict legislated time limits are part of the reason. It says structural defect claims must be lodged within three months of the owner noticing the problem. For non-structural defects, it says the owner must be aware within six months of completion and lodge within seven months. The annual report does not break declined claims down by reason, so the share lost to missed deadlines is not public.

The cost does not stop with the owner. The Good Builder notes the QBCC can recover payments from the contractor who did the work and from directors at the relevant time. Licensed builders and subcontractors should treat an approved claim against their work as a live liability.

Related: QCAT revived a Mount Gravatt East home warranty claim after a builder’s liquidation.

The numbers

The annual report table gives a five-year run for claims finalised:

• 2025-26: 676 approved, 776 declined, 210 not approved or declined.
• 2024-25: 765 approved, 781 declined, 218 not approved or declined.
• 2023-24: 1,210 approved, 1,056 declined, 230 not approved or declined.

The “not approved or declined” group covers withdrawn, duplicate and referred claims. Total claims finalised fell to 1,662 from 1,764. Claims received rose to 1,967 from 1,824, and non-completion claims rose to 664 from 605.

Of the 1,452 claims that were decided one way or the other in 2025-26, about 53% were declined.

The scheme itself is growing. Total insurance policies issued reached 198,944, up from 164,050, and premium revenue rose to $233.6 million from $198.3 million, according to the same table.

QBCC’s 6 October release puts approved claims at $55.7 million. That splits into $24.8 million for incomplete work, $27 million for defects and $3.9 million for subsidence. It also says fewer than 2% of active policies result in a claim each year. QBCC CEO and Commissioner Angelo Lambrinos said: “Building or renovating a home is one of the biggest financial commitments most Queenslanders will ever make.”

What’s next

Victoria moved to first-resort cover for new contracts from 1 July 2026, according to The Good Builder. It says New South Wales cover remains last resort. Queensland’s results give both states a live comparison.

Owners on a Queensland build should diarise the completion date and the lodgement windows. Builders should keep defect rectification records, because a declined claim moves the dispute back to the contractor and the owner.

Watch the 2026-27 report for a reason-coded breakdown of declines. Without it, owners and the industry cannot see whether the problem is deadlines, eligibility or evidence. More coverage is on our Queensland market page.