What Does a New Home Warranty Cover?

When you buy a pre-construction home, a new home warranty is typically included.

A new home warranty may provide financial compensation if defects are discovered after the construction of your home is complete.

Actual coverage, how long it lasts and how to make a claim will depend on who provides the warranty. Because coverage can vary, it pays to understand how new home warranties work.

What is a new home warranty?

New home warranties are provided by developers to the buyers of pre-construction homes to assure the buyer that any unexpected problems will be fixed at no extra cost.

Your warranty’s coverages depend on the provider, type of structure and local government regulations.

New home warranties often cover:

A warranty’s length depends on what needs to be repaired and who the provider is.

In Ontario, for example, the company that administers the province's new home warranty program (Tarion) covers major structural damages for seven years, building code violations for one year and health and safety violations for two years.

In other provinces, coverage for certain aspects of a home may be in place for as long as 10 years.

In most cases, the warranty starts when you take possession of your home. However, the warranty for common elements in a condo begins when the condominium corporation is registered.

New home warranty programs across Canada

A new home warranty is mandatory in Quebec, Ontario, Alberta and British Columbia.

Throughout the rest of the country, warranties are left up to the individual builders. That said, if the builder is part of a professional association, they may be required to offer a warranty.

The warranty should be clearly outlined in your purchase agreement. If you’re not sure, ask your realtor or the sales representative to go over things with you.

New home warranty in Atlantic Canada

Residents of Newfoundland and Labrador, Nova Scotia, New Brunswick and Prince Edward Island who purchase a new home are covered by Atlantic Home Warranty. This is an optional third-party warranty provider, but many of the top home builders in the region offer it.

New home warranty in Quebec

The Guarantee Plan for New Residential Buildings is available to residents of Quebec who are purchasing new homes. Homes covered include detached, semi-detached, prefabricated and more. You’re entitled to up to $300,000 in total coverage if you need to make a claim.

New home warranty in Ontario

The Tarion Warranty Corporation provides insurance for freehold homes and condominiums in Ontario. Freehold homes are covered up to $400,000. Condominium common elements warranty is currently valued at $100,000 times the number of units, up to $3,500,000.

New home warranty in the Prairies

Saskatchewan has an optional new build warranty program provided by the Saskatchewan New Home Warranty Program.

Manitoba's new home warranty program is also optional, but the Manitoba Home Builders' association requires its members to provide third-party warranty coverage.

The Alberta New Home Warranty Program is mandatory.

New home warranty in British Columbia

The British Columbia Homeowner Protection Act and regulations require residential builders to provide third-party home warranty insurance. There are multiple warranty providers in B.C.

Making a new home warranty claim

Hopefully, you never need to make a warranty claim, but if you do, here’s what to expect:

The claim process may differ slightly for each warranty provider. You can usually find detailed instructions on how to make a claim on their websites.