Jan Calkins, Homeowner Protection Office
Sun
ADVICE I Home inspector Wayne Houghton and his wife, banker Lee-Ann Page, had several reasons for trading their newly renovated ‘fixer-upper’ for a brand new, three-bedroom single family home in Maple Ridge last January. At the top of the list was peace of mind.
“We had just spent five years in constant renovation mode and wanted to have more quality time on the weekends, so we decided to buy new. As a home inspector, I was also aware that we would have the benefit of the protection of home warranty insurance rather than having to roll the dice on a used home,” said Houghton.
As a result of provincial legislation introduced in 1999, buyers of new homes in B.C. are protected by the most comprehensive system of home warranty insurance against construction defects available in Canada.
Before the Homeowner Protection Act (the Act) was brought into force, new home warranty coverage in this province was optional and was not required to be provided by an insurance company. Also, the terms and conditions of those warranties were not standardized.
Today, a number of checks and balances regulating the new home market have tipped the scale in favour of consumers.
Among them is mandatory home warranty insurance on new homes constructed by licensed residential builders, which provides owners of new homes with a minimum coverage package of two years against defects in labour and materials, five years against defects in the building envelope and 10 years coverage against defects in the structure.
This 2-5-10 insurance covers buyers of new, single-family and multi-family homes. Owner-built homes are exempt from this requirement and are usually not covered by home warranty insurance.
According to Houghton, the coverage on the structure of the building and on the building envelope, which includes damage caused by water penetration, is especially important.
“It’s a great selling feature. Home warranty insurance gives people confidence,” he said.
That confidence was reflected in a consumer survey conducted for the Homeowner Protection Office, the Crown corporation established by the Act to administer provincial homeowner protection and to provide information on these and other topics to buyers of new homes.
About 78 per cent of current homeowners in the survey rated home warranty insurance as being “very important” when it comes to feeling confident about the home they have purchased.
Survey results also rated homeowner satisfaction with the quality of new home construction at 91 per cent, and homeowner satisfaction with the protection provided by warranty insurance in their new homes at 80 per cent.
For the first year of the two-year coverage for labour and materials, buyers of new homes are covered for all construction defects subject to the Act.
Before the two-year period expires, building inspectors are sometimes hired by owners to inspect a home for construction defects.
“No home, no matter how well built, is perfect. There are often minor issues that turn up,” said Houghton
Like many new home buyers, Houghton did a lot of pre-purchase research to find a reputable builder and a quality development.
“Certainly, my experience helped me identify quality construction. The overall look of the subdivision and the use of quality materials and other details gave me a pretty good feel for how the homes were put together. We haven’t had any problems with our house,” he said.
So far, Houghton and his wife are pleased with their new home purchase. “Renovations can take up all of your summer. We’re really enjoying our freedom on weekends, and really enjoy our new lifestyle.”
More information on home warranty insurance is available on the Homeowner Protection Office website at www.hpo.bc.ca or by calling 1-800-407-7757.
© The Vancouver Sun 2006
