Buyers of new homes should be aware of the roles of the builder and warranty provider with respect to the property’s home warranty insurance.

Under the Homeowner Protection Act, every new home offered for sale or built under a construction contract in B.C. must be constructed by a Licensed Residential Builder (exceptions apply to owner-built homes). Builders are responsible for arranging home warranty insurance on homes they sell or build under contract with an owner.

The warranty provider is ultimately responsible for repairing any construction defects covered by the policy, but in many cases the original builder will have a contractual obligation with the warranty provider to carry out the repairs.

Always notify both the warranty provider and builder in writing of any work to be done under the home warranty insurance policy.

Owners of new homes can also check the HPO's Residential Construction Performance Guide to determine whether a possible construction defect might be covered by home warranty insurance and to better understand how warranty providers may evaluate claims in new homes.

For more tips, download the free Guides at www.hpo.bc.ca.

Copyright Homeowner Protection Office. Reprinted with permission.