Understanding Alberta’s New Home Warranty Program

From modern features and finishes to contemporary floor plans and flourishing neighbourhoods, there are plenty of perks that come with purchasing a newer home – including new home warranty. As of 2014, all new homes in Alberta became subject to mandatory coverage for up to ten years!

If you’re thinking of buying a new(er) home here in Edmonton (or anywhere else in the province, for that matter), here’s what you need to know about new home warranty in Alberta.

What is New Home Warranty? 

As we mentioned above, all homes built after February 1st, 2014, require new home warranty coverage under the province’s New Home Buyer Protection Act. This means all builders must provide coverage on all new construction properties (including condos and manufactured homes) and meet legislated requirements as set forth by the Government of Alberta.

How Does It Work? 

Here again, newly built properties are subject to an obligatory 10-year warranty. So, no matter if you’re the home’s first owner or the fifth, as long as the property was built after February 1st, 2014, you will be eligible for some or all of the following coverages:

One Year Labour and Materials Coverage

For the first twelve months following construction, homes will receive coverage for any defects related to materials and labour (i.e. construction materials and how they were used). This may include items such as paint, trim, baseboards, flooring, fixtures and more.

Two Years Distribution and Delivery Systems Coverage 

For the first twenty-four months following construction, you will be covered for any materials and labour issues affecting your home’s distribution and delivery systems. Often referred to as “mechanical systems,” these include heating (HVAC), plumbing and electrical.

Five Years Building Envelope Coverage 

Think of your home’s envelope as its outer shell. This includes your siding, roof, walls, doors, windows, etc. In short, the envelope is anything that separates the home’s conditioned (interior) space from unconditioned (exterior) space.

Note: Some builders may provide an optional two-year extension for the home’s building envelope, for a total of seven years’ coverage.

10 Years Major Structural Components Coverage

Structural components coverage pertains to your home’s “skeleton” or the load-bearing parts that make up its structure. Your roof, foundation, framing (walls) and supporting elements such as beams, trusses and joists are all considered structural components. 

Keep In Mind…

Not all items are subject to warranty coverage. For instance, if defects in your home are a direct result of homeowner wear and tear or negligence (i.e. your flooring is damaged as a result of children or pets), your builder or the warranty provider may deem it an unwarrantable repair. 

To learn more about what may or may not be considered a warrantable repair, see the Construction and Performance Guide for New Home Warranty in Alberta.

Where Can I Find More Information on My Home’s Warranty? 

If you are purchasing or building a brand-new home, your builder will explain the warranty and coverage provided. If you are buying a previously owned home, any remaining coverage will transfer over to you (your REALTOR® will help you with this). To learn more about your home’s existing coverage, visit the Government of Alberta’s Public Registry of Builder and Property Information.

For more helpful home-related info, check out our Edmonton real estate blog or subscribe to our newsletter below!

Photo credits: Shutterstock.com

Categorised in: Buying a Home, First-Time Home Buyer

This post was written by Terry Paranych Real Estate Group