As the owner of a home protected by home warranty insurance, you are expected to do a number of things to ensure that you do not limit or jeopardize your coverage:
- Be familiar with your home warranty insurance policy and maintenance manual (if provided), and keep these documents in a secure place.
- Know when the relevant warranty periods for your home expire.
- Carry out regular maintenance on your home in accordance with the maintenance information from your warranty provider or builder. If you have not received a maintenance manual, ask for one.
- If a suspected defect arises with an item covered by your home warranty insurance, immediately report the problem in writing to the warranty provider and the builder. Defects must be reported within the relevant coverage period.
- Take reasonable steps to minimize further damage to your home that may result from a potential defect. For example, if a broken pipe is leaking into your new home, you may be able to minimize damage by shutting off the water supply until the warranty provider or builder can inspect it.
- Provide warranty insurance policy documents, the maintenance manual and other warranty information (e.g. for appliances, products or systems) to subsequent purchasers of your home.
Types of Protection
Mandatory home warranty insurance applies to all new homes offered for sale or under a construction contract with an owner unless there is an applicable exemption. This warranty insurance is sometimes called a third-party warranty, the mandatory warranty or 2-5-10 warranty.
Mandatory home warranty insurance is for three different time periods, covering three different aspects of home construction: 2 years on labour and materials (some limits apply), 5 years on the building envelop, including water penetration, and 10 years on the structure. This is often referred to as “2-5-10″ coverage. The requirements for a minimum 2-5-10 warranty insurance policy cannot be waived by any separate contract between you and the builder.
Coverage period commences on the date of first occupancy, date of occupancy permit, or date the home was completed and ready for occupancy, which ever comes first. If you buy an existing or resale home that is covered, the coverage remains with the new home until the expiry of the 2-5-10 coverages. All of the applicable benefits under home warranty insurance that have not expired are available to subsequent owners.
For more information, please contact the Homeowner Protection Office (HPO).
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