How Long Is a New Home Warranty in Alberta? Coverage Periods

You have bought a new home in Alberta, or you are thinking about it, and you want to know how long the builder's warranty actually lasts. The answer is not a single number. Different parts of the home are covered for different lengths of time.

This article explains the minimum periods, when they start, how much coverage there is, how to check a home's coverage, and what to do if something goes wrong. Your own warranty contract and the facts of your home matter, so a lawyer can confirm how this applies to you.

This article covers the law of Alberta.

The four minimum coverage periods

The New Home Buyer Protection Act requires builders to provide home warranty coverage on all new residential homes, including condominiums, manufactured homes and recreational properties. The minimum periods depend on what part of the home is affected.

Warranty providers must offer builders the option to buy an extra 2 years of building envelope coverage. These are minimums, so your contract may offer more.

When the warranty clock starts

Coverage starts at the earliest of three events: the home being occupied, the permitting authority granting permission to occupy, or title transferring to the owner. Because it is the earliest of the three, the clock can start before you move in.

Condominiums work differently. Coverage for units and for common property starts on the earlier of first occupancy or transfer of legal title, with separate policies for each, and the start dates for common property may differ from those for individual units.

Coverage attaches to the home, not the owner. If you buy a resale home that is still within its warranty period, the coverage stays in effect until it expires.

How much coverage is there?

The minimum rebuild coverage limits are $265,000 for a single-family home and $130,000 for a condominium or other multi-family unit, and buyers can purchase more. The limits are based on rebuilding the structure only, so they exclude land, contents and landscaping.

Common property in a multi-family project, such as elevators, lobbies, stairwells and the building envelope, has up to $3.3 million in coverage per building.

Checking coverage and making a claim

The Property Registry shows the address, warranty provider and contact details, builder name, whether the home has warranty coverage and when coverage started. You can search it by civic address, lot/block/plan or builder.

To make a claim, contact the warranty provider. The provider explains its requirements, assesses the claim and works with the builder to resolve warrantable defects. Check the coverage dates first to confirm the issue is still within the period.

The Construction Performance Guide sets basic coverage requirements and recommended minimum performance expectations. It is not a comprehensive list, so an issue missing from the guide does not mean it is not a defect or that the provider is not responsible for it.

If you dispute a decision, claim disputes with a warranty provider are addressed by Guideline 05-2022, the New Home Warranty Insurance Claims and Claims Disputes Guideline, issued by the Superintendent of Insurance. The Residential Protection Program can be reached at 780-644-1010 or 1-866-421-6929. What is excluded from cover is set by the Home Warranty Insurance Regulation and your warranty contract, so read the contract closely.

Homes outside the Act

Not every home is covered. These are the main cases:

• Homes where the building permit was applied for on or before February 1, 2014.
• Renovations, unless the renovation makes up 75% or more of the home as new construction. A relocated home that is 75% or more new construction is treated as a new home.
• Homes built under a valid Owner Builder Authorization, for the home named in it. Qualifying homes are single-family, site-built homes for the owner's personal use, kept for at least 10 years.
• Homes on federal lands, such as First Nations reserves and National Parks.

An owner builder cannot sell or offer to sell the home within the 10-year protection period unless the required warranty has been purchased. The Act also does not cover dormitories, care facilities, work camps or hotels, and multi-family rentals kept for at least ten years do not require warranty.

What to do next

• Search the Property Registry for the home's address and note the warranty provider and start date.
• Work out which coverage periods are still running from that start date.
• Keep your warranty contract, purchase agreement and any builder correspondence together.
• Photograph and write down any defect, with dates.
• Contact the warranty provider to start a claim.
• If you are buying, remember a new home with a permit issued on or after February 1, 2014 cannot be sold or listed without warranty coverage and registration.

If a claim is refused or the contract is unclear, a lawyer can review your documents and explain your options.

Frequently asked questions