Home Warranty Insurance

Share Article

What to Consider when Buying a New Home

If you’re looking to buy a new construction condo, townhouse, duplex or house in Vancouver, there are a few differences that you need to know about compared to a “re-sale” property. One of the biggest things to know is about the Home Warranty Insurance that should be in place once the project is finished, and can only be in place if the Builder is licensed.

The standard (and minimum) Home Warranty in Vancouver (and across the province) is the “2-5-10” year warranty. That 2-5-10 coverage includes a minimum of:

  • 2 years on labour and material (some limits apply)
  • 5 years on the building envelope, including water penetration
  • 10 years on the structure of the home

There is a “New Homes Registry” that is very helpful to prospective home owners: https://lims.bchousing.org/LIMSPortal/registry/Newhomes/. This search will let you search for a specific property to view everything from the Builder Name, Builder Warranty Number, Warranty Commencement Date and Warranty Provider. This Registry will allow you to ensure that the building has the proper warranty on it prior to your purchase (at least, if the construction is complete).

For more information on new home warranties, including buying new and used homes, regulations, insurance claims ad maintenance, go to BC Housing’s site on the topic: https://www.bchousing.org/licensing-consumer-services/new-homes/

Note that “Owner-Built” homes might be exempt from some regulations, so if you’re buying an Owner Built home, check out the BC Housing website for more information.

I have to say, I’ve heard some bad stories of home buyers trying to recoup losses through the original home warranty to no avail. Like any type of insurance, the insurance provider is doing everything in their power to price that they aren’t responsible for it, so if you have to claim something, know that you’re in for a fight.