What is Alberta's New Home Warranty Program? Here's some Valuable Information

Alberta's New Home Warranty Program is a government-regulated program that requires builders to provide a minimum level of coverage for newly constructed homes. The warranty must be in place before the home can be sold, and provides homeowners with the assurance that their property will be free of unexpected expenditures and that problems will be fixed. The warranty is provided under the The New Home Buyer Protection Act. 

The warranty provides 1-, 2- 5- and 10-year coverage for workmanship, delivery/distribution systems, and building envelopes, respectively. 

What's covered?

Here is the overview of the coverage provided:

1 Year: Materials & Labour

The first year covers defects in construction materials and workmanship. During the first year, the home will settle a little bit into the land, so there may be some minor shifting. If there are any defects in the materials, the builder will do walkthroughs with the homeowner to ensure that everything is working properly.

2 Year: Delivery & Distribution Systems

The 2 Year protection covers Delivery & Distribution Systems such as mechanical, electrical, plumbing, ductwork, furnace, hot water tank, HRV system, and anything else mechanical in your home.

5 year: Building Envelope

The building envelope includes the exterior roof, exterior walls, doors, and windows. Some builders may have an extended seven-year warranty instead of the usual 5-year coverage. 

10 Years: Structural

The 10-year covers any structural damage. It includes load-bearing walls, framing, and foundation.

The warranty is transferable

If the current owners sell their house, the warranty will be transferred to the new buyer. The purchasers must notify the provider in order for the warranty to be transferred to their name. 

The Walk-Through Inspection

Before the warranty period begins, the builder and homeowner will perform a walk-through to inspect the property together. This is the time for homeowners to ask questions and clear any concerns they might have about the coverage.

What’s not covered in Alberta’s New Home Warranty

By understanding what is and what is not covered under Alberta's New Home Warranty, homeowners can make an informed decision when it comes to making a claim. The best source for this information is the insurance provider.

Typically, it does not cover appliances, any additions, common wear and tear, natural shrinkage of materials, as well as damages caused by acts of nature, animals or insects, and fire. Damages that are caused by negligence on the part of the owner or due to incorrect maintenance and repairs carried out by the owner are also not covered under Alberta's New Home Warranty.  

It is very important to contact your warranty providers before making any changes/additions to your house that may affect your warranty. So before making any modifications (extending your deck) or altering your foundation (drilling a side door, adding a window, or adding a door in the basement) check with your provider as it may affect your warranty. 

A Word of Caution

Take the time to read your warranty agreement in its entirety to understand what is covered. Become familiar with your policy expiration dates, restrictions, exclusions, owner maintenance obligations, and the financial limits of the policy. It's critical to be aware of deadlines, since missing them may result in claims being rejected.

The New Home Buyer Protection Act is a great piece of legislation that provides much-needed protections for those looking to purchase a new home. The Act requires builders to meet higher standards in terms of the materials they use and the workmanship they provide. It protects homebuyers against unexpected and costly repairs.

Be sure to read over your agreement carefully and contact your provider with any questions or before making any changes to your home.

A List of Alberta's New Home Warranty Providers

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