When is it “too late” to claim New Home Warranty Defects?
Knowing your home warranty insurance expiry date is critical to determining before your coverage will disappear, forever.
Insurance companies are very strict about these deadlines. If the documentation and input process is not started before the expiry date, you’re out of luck and may well end up paying for what the builder should have.
Home Warranty Insurance begins counting down from the date you occupy your new home or condo.
Contract or custom homes (built on land owned by the homeowner): date of first occupancy, date of occupancy permit, or date the home was completed and ready for occupancy, whichever comes first.
Spec Homes (built on land that was owned by the builder or developer): date of first occupancy or date of transfer of legal title to first owner, whichever comes first.
Strata Units: date of first occupancy or date of transfer of legal title to first owner, whichever comes first.
Strata Common Property: date of first unit occupancy in strata building or date of Transfer of legal title to first owner in building, whichever comes first.
1 year – Any defects in materials and labour on non-common areas in strata units and detached homes.
This often confusing coverage applies to any defect in materials and labour for 12 months for all new homes
2 Years – Construction Defects in Materials and Labour. (Including the electrical, plumbing, heating, ventilation and air conditioning delivery systems, as well as for the exterior cladding, caulking, windows and doors)
5 Years – Building Envelope Defects (Water Leakage / basement / foundation, roof, exterior walls, windows and doors)
10 Years – Major Structural Defects.
Unfinished Plumbing Vent in New Home’s Attic
Some builders may offer additional warranties as a part of their customer service, but the government does not regulate these “builder warranties” and they must be enforced as you would any other contract. Be sure to get any warranties from the builder in writing.
Many building components (such as flooring, cabinets, windows, plumbing fixtures and fittings) come with a warranty from the product manufacturer that extends beyond the mandatory home warranty insurance coverage. Ask the builder for copies of all manufacturer’s warranties. These warranties may be in the name of the builder, so find out if you need to have the warranty transferred to you.
Homeowners and Strata Corporations should read their policy thoroughly for coverage details. It’s also a good idea to download the free Guide to Home Warranty Insurance in British Columbia from the Homeowner Protection Office.
Since buying a home is one of the largest investments you will ever make, you want to be protected against construction defects. That’s why it is so important to have a full home inspection, to discover defects and schedule repairs by the builder. Do this /and as well before your home warranty expires, even if it is a brand new home and you may be thinking “ no problems”
Duxbury & Associates are THE Strata and Deficiency Specialists in the Lower Mainland. We are the “go-to” company for condos, townhouses and buildings. We also try to ensure that our clients are made aware of their home warranty expiry dates. You deserve financial security, peace of mind and no unnecessary financial “surprises”.
Don’t wait until your Home Warranty Insurance Expires!
Schedule a Home or Strata Inspection Warranty-Check today!