Protecting Your Investment in a New Home
Strong protection for new home owners via The Homeowner Protection Act & its Regulations (“Act”) became effective July 1, 1999. Prior to the issuance of a building permit, the Act requires all residential builders to be licensed by the Homeowner Protection Office (HPO) and to provide the “2/5/10” warranty from an approved third party warranty provider. For further information please contact HPO at: (604) 646-7050 or visit their website at www.hpo.bc.ca.
What is a “2/5/10” Warranty?
The Act outlines specific details about the mandatory warranty commonly referred to as a “2/5/10” warranty. It is the most comprehensive third party warranty in North America, and even the world. By law, builders must provide a third party warranty covering:
- 2 Year Materials & Labour Warranty.
- First 12 months — coverage for any defect in materials and labour.
- First 15 months — coverage for any defects in materials and labour in the common property of a multi-unit building.
- First 24 months — coverage for any defect in materials and labour supplied for the electrical, plumbing, heating, ventilation, and air conditioning delivery and distribution systems. In addition, coverage for any defect in materials and labour supplied for the exterior cladding, caulking, windows and doors that may lead to detachment or material damage to the new home.
- 5 Year Building Envelope Warranty.
- 10 Year Structural Defects Warranty.
- Stringent Underwriting Criteria.
- Travelers Guarantee Insurance Company thoroughly reviews all builder applicants in the areas of track record, technical expertise, financial capacity, and after sales customer service. Not every applicant qualifies. Only those builders who meet the stringent underwriting criteria are able to provide Travelers Guarantee Insurance Company’s home warranty coverage. The annual renewal of a builder’s registration is subject to a similar review. HPO also monitors builders throughout the province and investigates consumer complaints.
- Home Warranty Documentation.
- Our Builders are responsible for having their new home buyers sign and date a warranty Commencement Date Certificate at the time of either the title transfer or the actual occupancy of the home (whichever is earlier). Upon receipt of this completed certificate from the builder, Travelers Guarantee Insurance Company issues the owner a Home Warranty Coverage Certificate. Be sure to read this document carefully and keep it in a safe place. It explains warranty coverage and the process for reporting defects in your home or common property. Upon review, if you have questions or require clarification, please contact Travelers Guarantee Insurance Company.