New Home Warranty
Buying a new Fraser Valley home
Buying you first new home is an exciting proposition. No one has lived in that home, it is brand new! Most new home builders in the Fraser Valley strive to provide a good quality product. However, mistakes can and do happen and quality of new homes remains one of the main areas of concern for the buyers. With such a large investment at stake, it pays to learn about the New Home Warranty Insurance. In some ways this warranty is similar to the one you may get with a new car.
New Home Warranty Insurance
In the Fraser Valley, like the rest of the province, all residential builders must be licensed by the Homeowner Protection Office. In order to obtain a building permit or start construction, the builders must arrange for third party warranty insurance provided by an insurance company approved by the Financial Institution Commission.
Any new home built in the Fraser Valley must have 2-5-10 year new home warranty. The coverage provided, and the exclusions, are set by the government to ensure a consistent level of protection for new home buyers.
2-5-10 Year New Home Warranty
Home warranty insurance on new homes included a minimum of 2 years on labour and materials, 5 years on the building envelope and 10 years on the structure of the new Fraser Valley home.
Coverage claims are limited to lesser of the first owner's purchase price or $200,00 for detached new homes sold in the Fraser Valley. For Strata home, the warranty is limited to the lesser of first owner's purchase price or $100,000 for the Strata unit; for the common property the coverage is limited to lesser of $100,000 times the number of dwelling units or $2.5 Million for the entire building.
Owner-builders and New Home Warranty
By law an owner-built home is not required to be built by a Licensed Residential Builder and is not required to provide new home warranty insurance. However, an owner-builder is not allowed to sell a new home under construction or within a year of completion. Any owner-builder who markets a home as "new" without having first lived in the home may be in violation of the Homeowner Protection Act.
To learn more about the New Home Warranty Insurance or to start your new home search today, contact Fraser Valley Real Estate Specialist Sapan Behar.
