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New home warranty insurance in BC: What’s covered?

In BC, new home warranty insurance is mandatory on most new builds in the province, sometimes referred to as the “2-5-10” warranty.

The warranty includes:

  • A 2-year warranty on material and labour defects;

            For example: work related to drywall, plumbing, electrical, etc.

  • A 5-year warranty on the building envelope; and,

            For example: roof, cladding, windows, etc.

  • A 10-year warranty on structural components.

            For example: framing, foundation*, etc.

*One thing to note is that settlement cracks do occur in concrete overtime and are considered cosmetic, meaning they are not covered under the warranty, however, problematic cracks that are out of the ordinary would be covered.

Exclusions to the mandatory new home warranty insurance

There are some exclusions from this warranty, including:

  • Manufactured homes;
  • Properties build on First Nations land; and,
  • Properties purchased from a licensed owner builder*.

*While properties bought from a licensed owner builder are technically excluded from the mandate, the owner builder is responsible for property defects for 10 years after first occupancy.

There are other requirements to consider when purchasing from an owner builder. For example, an owner builder cannot sell the home until it has been lived in for at least one year.

Peace of mind

New home warranty insurance is intended to ensure a standard of quality is upheld with newly built homes, providing buyers with peace of mind in their investment.

Stay tuned for a blog post with more information specific to buying pre-builds.

As always, if you have any questions, please never hesitate to contact us. We’re happy to help!

Thank you for being here,

Alex Hughes* and Ricki-Lee Jewell, Victoria, BC Real Estate Agents

*Personal Real Estate Corporation

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