New Home Warranty (2-5-10) in BC Explained

The "2-5-10" home warranty is a mandatory insurance coverage that builders in British Columbia must provide when they sell a new home. This warranty is part of BC's Homeowner Protection Act and is designed to protect home buyers from construction defects. It is often referred to as a "2-5-10 year warranty" because it covers different components of the home for varying lengths of time up to 10 years.Here's what each part of the "2-5-10" warranty covers:

1. Two-Year Material and Labour Warranty

• Coverage: This part of the warranty covers any defect in materials and labor that may occur within the first two years after the home is completed.
• Details: This includes coverage for defects in materials and labor related to the delivery and distribution systems (electrical, plumbing, heating, ventilation, etc.), and defects in materials and labor supplied for the exterior cladding, caulking, windows, and doors that may lead to detachment or material damage.

2. Five-Year Building Envelope Warranty

• Coverage: This portion protects against defects in the building envelope, which includes the components of the home that separate the indoors from the outdoors (like the roof and walls). It specifically covers water penetration issues that may cause material damage.
• Details: The building envelope warranty includes coverage against water ingress, which is critical in protecting the structure from moisture which can lead to serious issues like mold, decay, and structural damage.

3. Ten-Year Structural Defects Warranty

• Coverage: This final component of the warranty covers structural defects for up to ten years. Structural defects are defined as defects in materials and/or labor that result in the failure of a load-bearing part of the home's structure or that affect its load-bearing function to the extent that the home's safety and habitability are threatened.
• Details: This can include major structural components like beams and columns and the foundation.

Additional Notes:

• Mandatory for All Builders: The 2-5-10 warranty is required by law for all new homes built by licensed residential builders. This includes detached homes, townhomes, and condominiums.
• Insurance-Backed: The warranty is typically provided through private third-party warranty providers approved by the BC government. Builders must secure this warranty insurance before obtaining a building permit and starting construction.
• Homeowner’s Role: Homeowners are responsible for maintaining their homes to ensure that the warranty remains valid. Failure to maintain the home properly could void certain coverage.
• Transferable: The warranty is attached to the home, not the owner, and is automatically transferred to subsequent owners within the warranty periods.

The 2-5-10 warranty gives buyers confidence in the quality and reliability of their new home and provides a clear recourse in the event of construction defects. For homebuyers, understanding this warranty and what each part covers can help them manage their expectations and responsibilities as homeowners.