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Alberta New Home Warranty FAQs

Alberta New Home Warranty FAQs

New home warranty options are some of the best tools available to Alberta homeowners. Owning a home provides a lot of advantages, but comes with responsibilities that you might be unaware of. A home warranty will protect your investment and best of all, every new home built in Alberta is required to have one. So let’s take a look at some popular questions people have when it comes to the Alberta New Home Warranty program.

What Law Mandates Home Warranties?

The New Home Buyer Protection Act, also known as the NHBPA, became law in February 2014. This act was designed to help ensure that warranty protection was available to all new home buyers. Some of the highlights include a minimum of 1-2-5-10 coverage, a government registry with public information that includes dates, and required proof of a warranty for builders in the province to receive permits.

What is 1-2-5-10 Coverage?

This mandatory coverage includes one year for materials and labour, two years for the distribution and delivery systems, five years that include building envelope protection, and ten years to cover all major structural components. The coverage offered under these warranties has helped provide greater protection for homeowners who would like to avoid needless costs.

What Does Labour and Materials Cover?

The one-year coverage includes defects in both the materials used and the construction of the house. Fixtures, trim and flooring are just a few of the material types covered.

What Distribution Coverage Handles

This warranty also covers both the materials and labour related to the home’s distribution systems. Home systems included in this coverage include plumbing, electrical and heating systems.

What is the 5-Year Building Envelope?

alberta new home warranty faqs home under construction imageThe five-year coverage is designed to include the home’s components separating the exterior air from the interior. These elements include window installation, the roof, cladding, and framing. The providers are also required to offer two-year extensions, bringing total coverage to seven years.

About the 10-Year Structural Integrity Coverage

This coverage includes structural elements such as the foundation and frame. Both labour and materials are part of this coverage. Defects that cause a load-bearing part of the home to fail or cause structural damage that affects the owner’s ability to live in the home are part of this coverage.

When Does Coverage Begin?

In the case of single-family homes or non-condominium multi-family homes, the date of the home’s occupation and the date an accredited agency gives permission for the home to be occupied. For single-family homes, the registration of a new title is also a factor. Multi-family buildings that are warrantable, common property or under a condominium corporation have coverage commence upon title transfer and an agreement for a building assessment report.

What Is Covered?

Living expenses are covered when a home is uninhabitable because of a defect. Warranty coverage limits are based on the lesser of the purchase price and the coverage limits set by the provider. There are also enhanced options beyond Alberta’s mandated protections.

What Are Some Enhanced Options?

You may be able to take advantage of pre-possession insurance that covers the time between a deposit and possession. Another possible option is deposit insurance, that protects against builder default.

A home warranty will help provide you with the best assurance and peace of mind that you’ll be able to occupy your new home with as few worries as possible. Your home will be ready for you to enjoy for years to come.

 

Photo credit: house on the hill, home under construction

About The Author

Sereena S.

Mom of two, wife to one, and a dog lover, although cats can be okay too. Sometimes.

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