New Home Warranty

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

The warranty coverage begins when the first of the following occurs:

• the new home is occupied
• the permitting authority grants permission to occupy
• the title of the new home is transferred to the owner

Covers any defects in materials and labour related to how the home was constructed and materials used. This may include things such as flooring, staircases, baseboards, cabinets, railings and other trim and fixtures.

 Covers defects related to the electrical, plumbing, heating, ventilation and air conditioning delivery systems. 

The building envelope is the shell of the home, including the roof and walls. It is the separation between the interior and exterior environments of a building, which protects the indoor environment and facilitates climate control.

The act requires a minimum 5 years of coverage, with the requirement that warranty providers offer builders the option of purchasing an additional 2 years of building envelope coverage.

 Major structural consists of the frame, including the roof’s structural integrity, and the foundation. 

The new home warranty coverage limit and/or rebuild amount, as established in the Home Warranty Insurance Regulation, is set at a maximum of $265,000 for a single-family home and $130,000 for a unit in a condominium or other multi-family complex. Homeowners can choose to buy additional coverage if they wish.

The coverage limits are based on the average cost of rebuilding a home. This includes the structure but does not include other costs such as land, contents or landscaping.

There is also up to $3.3 million in coverage for common property of each building of a multi-family project (such as, elevators, lobbies, stairwells and building envelope).

https://anhwp.com/