New Home Warranty Programs

New home warranty programs are there to ensure that the builder provides you, the home buyer/homeowner the coverage you are entitled to.  The new home warranty program may be called upon to help resolve issues between yourself and the new home builder.

Material and labor warranty coverage begins on the day of possession and may expire on the first or second year anniversary after possession (times and coverage will vary, please confirm with your builder or warranty program the details of your coverage).  Generally the warranty will cover any defects or deficiencies.  Your builder should provide you with documents outlining the construction performance standards; this is used to help determine what is considered a defect or deficiency and what is considered acceptable. 

Structural warranty coverage begins on the day of possession and may expire on the 5th or 10th year anniversary date of possession (times and coverage will vary, please confirm with your builder or warranty program the details of your coverage).  Generally the warranty will cover the structural components of your  new home.  The builder should provide you with documents outlining the construction performance standards; this is used to help determine what is considered a defect or deficiency and what is considered acceptable. 

Items that may not be included in the new home warranty service coverage:

• Any work, materials or designs installed or provided by the homeowner
• Damage as a result of improper maintenance
• Normal wear and tear
• Changes, alterations, additions or deletions made by the homeowner
• Settling of soil around the foundation or along utility lines
• Acts of god, such as floods
• Damage caused by the municipality or municipal services or utilities
• Damage caused by the homeowner
• Normal shrinkage or settling of materials, such as small cracks in concrete or nail pops (drywall screws pop through the drywall due to shrinkage of the wood framing studs).

Your warranty service program should provide you with a detailed list of items that are excluded from coverage

Important new home warranty service inspection dates

Typical coverage periods: the first year for material and workmanship and 5-10 years for structural.

• The first 30 days after possession.  Any defects or deficiency items recorded during the pre-possession walkthrough should be completed in this period.
• Thirty days prior to the first year anniversary, contact your builder to perform the inspection.
• Thirty days prior to the end of coverage for the structural part of your coverage.

The first year in your new home

During the first year in a new home it is quite common to encounter items that need to repaired, replaced or adjusted.  A combination of homeowner maintenance and your builders warranty program should correct many if not all outstanding issues.  By this stage you should have already received the warranty service programs set of manuals, forms and other documents.  Included in the package should be a maintenance manual, use this to help keep your home operating properly and efficiently.

New home warranty service programs provide a valuable service to both the homeowner and the builder.  But ultimately it is your responsibility to protect your interests.  If at any time you feel uncomfortable or unsure about any of the processes with the builder or warranty program I suggest you contact your lawyer for legal advice.