Have you heard? As of February 1st 2014, all new homes built in Alberta will require new home warranty. The Alberta Government's New Home Buyer Protection Act encourages higher quality standards to protect buyers.
Under the new legislation, all home builders- with the limited exception of owner-builders - have to buy a warranty policy, estimated at $1,700 to $2,000 on an average home, before being eligible for a building permit.
Warranties must be purchased for single-family homes, condos, manufactured, modular and mobile homes, as well as recreational properties, such as cottages. Warranties are currently available from one of five registered private firms (Aviva Insurance Company of Canada, Blanket Home Warranty, Progressive Home Warranty, Alberta New Home Warranty & Travelers Insurance Company of Canada).
Builders also have to register each property online for $95, creating a public record of the status of the warranty for future buyers. The standardized warranty terms include protection for a minimum of one year on labour and materials, two years for plumbing and electrical systems and five years for building envelope protection against water damage. While most home builders already provide those basic warranties, the major change is a doubling of coverage term on major structural parts from five to ten years.
For more information visit www.homewarranty.alberta.ca
Source: AMBA matters