WHEN YOU DECIDE to buy a new home in BC, that home will have a warranty covering defects in materials and labor.  Even a house thats less than five years old will have a warranty to protect your investment.  The cost of the warranty on your new home is typically included in the price you pay for the house or condo unit.

The BC government made home warranty insurance a requirement in July 1999.  Since that time, mandatory warranties have been provided by private sector companies and licensed residential builders have been regulated by the Homeowner Protection Office.  New home warranty insurance in BC are designed to protect you and subsequent owners of your home.

Most new homes in the province carry the same home warranty insurance.  Its called a 2-5-10 warranty and this is how it works.

If there's a defect in the materials used in your new home or, if the builders used incorrect building practices, then any defects arising during the first year will be made right.  Every new home is covered for two years for material and labor defects in the "systems" in your house, which includes gas, electrical, plumbing, heating, ventilation and air conditioning.  You're also covered to two years for defects in the exterior cladding, including doors and windows that may lead to damage to your new home.  Thats the 2 in the 2-5-10 warranty.

The 5 in the warranty is five year protection for the building envelope.  That means your new home is covered for defects that include water penetration that causes material damage to your home. The 10 in the warranty is ten year coverage for major structural defects in your home.

MAKING YOUR WARRANTY WORK FOR YOU

If you have a problem with your new home, you should know how your warranty will work. 

When you take possession of your new home, your builder should walk through the unit with you to idnetify any items that need to be repaired.  After you have moved in and you notice defects, your first step is to send your builder a list of those defects, and send a copy to your warranty provider.  Your builder should respond to you and should fix any defects as a normal after sales service.

However, if you don't get satisfaction from your builder, or if your builder doesn't repair the defects, then take step two - contact your warranty provider in writing what is wrong with your house and what has happen with your builder.

Not everything is covered by your limited 2-5-10 warranty and there might be a disagreement about what's covered or who is responsible for the repairs.  If you are not happy with the response from your warranty provider, consider step three - mediation.  Under Homeowner Protection Office Regulations, there is a provision for mediation of disputes between warranty providers and owners.  More detailed inofmation can be obtained through their wesbite at www.hpo.bc.ca

MAINTENANCE IS YOUR RESPONSIBILITY - The biggest single point of disagreement around warranty coverage is the issue of maintenance of your home.  When you buy a new home you must work diligently to maintain it.  That includes cleaning gutters and painting among other normal maintenance activities.  If you don't maintain your home, you run the risk of encountering certain exclusions in your warranty. 

Remember, your new home warranty is like any other insurance product.  So when you take possession of your new home, read your warranty certificate and documents carefully.  If you've just purchased a new home, or planning to buy one, buy with confidence.

- article courtesy of Ray Windsor, National Home Warranty