BC Home Warranty Insurance

As a result of provincial legislation introduced in 1999, buyers of new homes in B.C. are protected by the most comprehensive system of home warranty insurance against construction defects available in Canada.

Before the Homeowner Protection Act (the Act) was brought into force, new home warranty coverage in this province was optional and was not required to be provided by an insurance company. Also, the terms and conditions of those warranties were not standardized.

Today, a number of checks and balances regulating the new home market have tipped the scale in favour of consumers.

Among them is mandatory home warranty insurance on new homes constructed by licensed residential builders, which provides owners of new homes with a minimum coverage package of two years against defects in labour and materials, five years against defects in the building envelope and 10 years coverage against defects in the structure.

This 2-5-10 insurance covers buyers of new, single-family and multi-family homes. Owner-built homes are exempt from this requirement and are usually not covered by home warranty insurance.

For the first year of the two-year coverage for labour and materials, buyers of new homes are covered for all construction defects subject to the Act.

Before the two-year period expires, building inspectors are sometimes hired by owners to inspect a home for construction defects.

More information on home warranty insurance is available on the Homeowner Protection Office website at www.hpo.bc.ca or by calling 1-800-407-7757.

(Source: Vancouver Sun)