As of 1999, all residential builders in British Columbia are required to be licensed by the Homeowner Protection Office and arrange for third-party home warranty insurance on proposed new homes prior to obtaining a building permit. In geographic areas where building permits are not required for new home construction, licensing and warranty insurance must be in place prior to the commencement of the construction.
New homes built in BC are protected by 2-5-10 home warranty insurance, as set out by the Homeowner Protection Act of BC. Licensed residential builders are regulated by the Homeowner Protection Office. Mandatory warranty insurance includes the coverages below:
- 12 months’ coverage for defects in material and labour for your unit
- 24 months’ coverage for defects in material and labour for major systems (heating, electrical, plumbing, etc.)
- 5 years’ coverage on the building envelope, including coverage on unintended water penetration
- 10 years’ coverage on major structural items
This statutory protection is widely recognized as one of the strongest and most effective home warranty standards in Canada.
Learn more about consumer protection legislation and regulations: