Sutton Showplace Realty (2015) Chilliwack


Home Warranty Insurance on New Homes

09 March 2018
Sutton Showplace Realty Chilliwack

According to the Homeowner Protection Act and regulations, new homes built in  B.C. by licensed residential builders must be covered by mandatory,  third-party home warranty insurance.
It’s one of the strongest construction defect insurance coverages in Canada.

It’s  important to have your home inspected within the first 11 months of  living in the home, in order to present the inspection findings to the  builder within the first year of the warranty.

Minimum coverage
At a minimum, home warranty insurance coverage includes:
    •    2 years on labour and materials (some limits apply)
    •    5 years on the building envelope, including water penetration
    •    10 years on the structure of the home
The two-year labour and materials coverage covers any defect in labour and materials for:
    •    12 months on detached homes and on non-common property in strata units (including fee simple homes)
    •    15 months on the common property of strata buildings
     •    24 months on all new buildings for defects when related to  delivery and distribution systems; defects related to the exterior  cladding, caulking, windows or doors that may lead to detachment or  material damage to the new home; coverage for violations of the Building  Code that constitute a health or safety risk or is likely to result in  damage to the new home; and defects which render the home unfit to live  in.
Minimum coverage for third-party home warranty insurance is  set by legislation. As a minimum, homes built by Licensed Residential  Builders must have 2-5-10 Year Home Warranty Insurance . Some new homes  have warranty insurance coverage that exceeds the minimum requirement.  You should carefully review your home warranty insurance policy  documents which will provide specific details on the home warranty  insurance coverage on your home.

The warranty is attached  to the home, not to the owner of the home, and remains in effect upon  the re-sale of the home until the coverage expires.

Strata-titled  homes have two policies of home warranty insurance: one on the home and  the other on the common property. Sometimes when the coverage of a new  strata-titled home starts, the coverage on the related common property  has already started — or expired. Coverage on the common property of  strata-titled buildings starts when the first unit in the building is  occupied or sold.

To read more or to find a list of exemptions, click here: