What Is 2-5-10 Year New Home Warranty Insurance?

What Is 2-5-10 Year New Home Warranty Insurance?

If you’re building a new home in Whistler, you’ll be pleased to know that new home builds in British Columbia, Canada require a 2-5-10 year new home warranty, and a licensed builder must do the work. 

Read on to gain valuable insight into what this new warranty means as you build your custom dream home.  

How the 2-5-10 Year New Home Warranty Benefits You 

The 2-5-10 Year New Home Warranty Defined

The Homeowner Protection Act has been safeguarding homeowners in British Columbia since 1999. To ensure that you're covered by a reliable company, home warranty insurance must be provided by licensed residential builders that have been approved by the Financial Institutions Commission (FICOM). Standards of coverage, exclusions, and limits on coverage are established by the government to ensure consumer protection. 

When building a new home in British Columbia, you'll have the benefit of a 2-5-10 year warranty, covering:

  • Two years of comprehensive warranty on labor and materials 

  • Five years of coverage on your building envelope (the “skin” of your home), against water penetration

  • Ten years of coverage on your structure (the “bones” of your home)

The 2-5-10 Year Warranty in Detail

2 years of coverage on labor and materials 

  • Defects in materials and labor are covered for 12 months on detached homes and non-common property in strata units (where you own a unit or lot, and part of the common area). 

  • Labor and material defects are covered on common property of strata buildings for 15 months. 

  • Defects in material and labor related to electrical, plumbing, heating ventilation, and air conditioning are covered for 24 months for all buildings. 

5 years of coverage on your building envelope

This part of the warranty covers the first 5 years that you live in your home—against any defects in your building envelope (your home’s ‘skin’). This includes primarily issues related to water penetration. 

10 years of coverage on your home’s structure

The final part of the warranty covers any structural issues (your home’s ‘bones’) that could occur, including settling of the foundation or other structural problems. 

Frequently Asked Questions about the New Home Warranty

1. When does the warranty go into effect? 

Your 2-5-10 year home warranty’s start date is either the date you first occupy your home, or when the occupancy permit is issued (whichever comes first). 

2. Are there any exclusions to the warranty coverage?

Coverage excludes things like landscaping, non-residential structures, commercial use areas, roads, curbs, and lanes; site grading and surface drainage; septic tanks and fields; and water quality and quantity. Note: Parking structures, recreational and amenity facilities in multi-unit buildings are covered. Additionally, driveways are also covered. 

3. What type of defect-related exclusions exist with the coverage?

Exclusions can include items like normal wear and tear; shrinkage of materials from construction; using a newly constructed home for non-residential purposes; materials; labor and design supplied by the owner; damage by anyone other than the residential builder; pest or rodent damage; failure of an owner to prevent or minimize damage and acts of nature; and any work or improvements done by the owner. 

Now Is the Best Time for Your Dreams to Come to Life

The Canadian government's commitment to ensuring builders provide those exceptional warranties is an excellent opportunity to kickstart your custom home dreams. We're genuinely excited to be your partners on this journey, and our goal is to not just meet but exceed your expectations at every step, from the initial concept to the final completion.

At Whistler Builder, our journey spans back to 1996, where we've proudly crafted hundreds of homes in the Sea to Sky Corridor. This dedication has been honored with accolades such as Best of Houzz Service winner in 2019, 2020, and 2021 as well as 4 time Georgie Awards finalist. Please take a moment to explore and discover how our custom home building services can turn your dream home into a reality.

David Girard