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New Home Warranty 101

New Home Warranty 101

Buying a new home is a fun and exciting process. Many people love looking at features on homes and picking out the perfect property for their needs. Home warranties usually take a back seat to other things on the buyer’s list of things to worry about.

However, a home warranty is one of the most important aspects of buying a new home. It will help protect you financially in the event of a major issue. In Alberta, there are several laws around home warranties that protect buyers. Here are some of the different protection plans on a home warranty.

Legal Coverage

New Home Warranty 101 Protected House ImageUnder the New Home Buyer Protection Act (NHBPA), all new homes must come with a home warranty plan for the buyer. The law was enacted in 2014, and since that point, new home builders have had to comply with it.

Every new home that is sold has to have proof of coverage.

Year 1

Each home warranty has different tiers of coverage. In the first year, a new home is covered in areas of materials and labor. This would be something like the paint chipping on the walls. The home warranty will cover things that are material or labor defects.

Year 2

Your home warranty will cover all of the distribution systems in the home through the second year. These are some of the most expensive elements of owning a home.

If a plumbing system fails within the first two years, it probably means that something was not installed properly. This allows the buyer to have some financial protection in this case. In the past, home buyers who did not have a protection plan would have to spend a ton of money to fix the systems in the home.

Year 5

Going up to the fifth year, a home warranty will cover things that protect the home from outside elements. One of the best examples of this is the roof and windows. If these items encounter issues in the first five years, you are covered by the warranty.

Year 10

One of the best aspects of The Alberta New Home Warranty is the structural coverage. Homeowners can expect to receive ten years of coverage on several things within a home.

These areas are related to the structure of the home and include the labor and materials. One of the best examples of this is the foundation. If you have any cracks in the foundation of a home, it can signal a lot of future potential issues.

It is vital to repair any structural damage as soon as possible. Working with a qualified home builder will prevent many of these issues. However, if this issue does come up within the ten-year window, you will have a protection plan to get it repaired.

Another great feature is that the warranty will pay for you to live somewhere else during the repairs. The warranty will cover $150 a day, up to $15,000, during the course of the repairs. This is a huge financial benefit if you do have to go through this process.

Next Steps

Under the new NHBPA law, home builders are required to carry a home warranty plan on any new property. Buying a new home is a great opportunity for many people and The Alberta New Home Warranty 1-2-5-10 coverage makes it easy.


Photo credits: constructionprotected house

About The Author

Jeff S.

Proud father and husband. Loves music, Nine Inch Nails, UFC and inbound marketing.


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