One of the biggest benefits of purchasing a newly constructed home is the requirement of the builder to arrange for third-party home warranty insurance. When you move into your new home you will have the confidence and assurance that should anything need repair that you don’t have to pay out of your own pocket.
Home warranty insurance on new homes includes a minimum of two years on labour and materials, five years on the building envelope (including water penetration), and 10 years on structure. However, coverage on labour and materials may, in some cases, be only 12 months.
In general, the two-year labour and materials coverage is broken down as follows: Any defect in materials and labour:
- 12 months on detached homes and on non-common property in strata units (includes fee simple homes); and 15 months on common property of strata buildings.
Defects in materials and labour related to the delivery and distribution systems (electrical, plumbing, heating ventilation, air conditioning, etc.):
- 24 months for all buildings.
