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Dated: March 20 2021
Views: 893

Courtesy of Kamil Lalji, Associate Broker at CIR REALTY
Buying a newly built home is an exciting milestone in your life. However, it can also be an extremely overwhelming and busy process. One term that you will always hear is “New Home Warranty”. If you’re not quite sure what this means or why it’s important to you as a 'new' homeowner, we have you covered!
What is a home warranty?
In February of 2014, Alberta’s New Home Buyer Protection Act was passed. Due to this, newly built homes are now legally required to have warranty. This encourages home builders to meet high standards and protect homeowners from expenses for any repairs that might be needed.
So, if you are buying a newly built home, you automatically have new home warranty!
Why is it important for me as a newly built homeowner?
Unfortunately, it is very possible for newly built homes to have defects with the building, electricity, plumbing, and fixtures which can result in hidden expenses. A home warranty will assure that you as a homeowner you are protected from the costs of repair, if needed.
How can I get a new home warranty in Alberta?
As a result of the New Home Buyer Protection Act, it is now the responsibility of the home builder to obtain warranty. In Alberta, a builder will not be issued a permit to build without proof of new home warranty coverage. These homes are then registered and a copy of the warranty is provided to the homeowner. Now, as the homeowner, you can contact your warranty provider and resolve any issues directly with them, however they'll likely recommend you try resolving issues with the Builder first.
What if I experience issues with my new home?
Luckily as a newly built homeowner, you are automatically provided warranty through your builder. So, if you experience issues with your new home, you as a homeowner can file a claim. However, you must ensure that you are covered under the warranty, and then contact your warranty provider for further steps.
Your warranty provider will work with you and your builder to resolve any issues.
Who are the warranty providers in Alberta?
In Alberta, there are 7 home warranty providers.
Millennium Insurance Corporation
National Home Warranty Group Inc.- Aviva Canada Inc.
Progressive Home Warranty Solutions Inc.- Echelon Insurance
The Alberta New Home Warranty Program
Travelers Insurance Company of Canada
WBI Home Warranty Ltd.- Royal and Sun Alliance Insurance Company of Canada (RSA)
What are the types of warranties?
There are 4 options of minimum warranty coverage required by the New Home Buyer Protection Act in Alberta.
1. One Year
This warranty provides coverage specifically for labour and materials.
2. Two Years
This warranty provides coverage specifically for delivery and distribution systems.
3. Five Years
This warranty provides coverage specifically for building envelope protection.
4. Ten Years
This warranty provides coverage specifically for major structural components.
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Welcome to my world of real estate! My name is Angelique Garcia and I am a passionate and dedicated real estate professional. For me, real estate is not just a job, it's a way of life. I am....
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