- A new home in British Columbia generally must be registered for warranty insurance of at least 2 years for materials and labour, 5 years for the building envelope and 10 years for structural defects.
- The 2-year layer is staged, so some items are covered for 12 months and others for 24 months.
- To claim, give written notice to both the warranty provider and the builder within a reasonable time after you find the defect and before coverage expires.
If you are buying a newly built house or condo in British Columbia, you will hear about "2-5-10" coverage. It is shorthand for the minimum new home warranty that the law requires, and it is easy to assume it covers more than it does.
This article explains what each layer covers, what is commonly left out, and how a claim starts. Your own warranty document and contract matter, so read them closely and ask a lawyer if anything is unclear.
This article covers the law of British Columbia.
What 2-5-10 means
Under the Homeowner Protection Act, a person may not build a new home unless it is registered for home warranty insurance covering at least 2 years for materials and labour, at least 5 years for the building envelope (including water penetration), and at least 10 years for structural defects.
- 2 years: materials and labour
- 5 years: the building envelope, including water penetration
- 10 years: structural defects
These are minimums. Warranty providers' policies can be broader, so your actual policy may offer more than the legal floor.
The two-year layer is staged
The 2-year materials and labour coverage is not a single block of time. The regulation divides it into shorter periods depending on the type of defect.
| Type of defect | Coverage period |
|---|---|
| Defects in materials and labour, and code violations | 12 months (15 months for strata common property) |
| Electrical, plumbing and HVAC distribution systems, exterior cladding, caulking, windows and doors that could cause detachment or material damage, and defects making the home unfit to live in | 24 months |
Building envelope and structure
The 5-year building envelope coverage applies to defects, including water penetration, that cause or are likely to cause material damage.
The 10-year structural coverage applies to a defect in materials and labour that results in failure of a load-bearing part, or structural damage that materially and adversely affects residential use. A cosmetic or minor problem is unlikely to meet that test.
Exclusions, limits and special cases
Warranty providers may exclude certain items. Permitted exclusions include landscaping, detached non-residential structures, commercial-use areas, roads, site grading, municipal services, septic systems, and water quality or quantity. Defect exclusions include normal wear and deterioration, normal shrinkage, owner-supplied materials, owner or third-party damage, failure to mitigate, acts of nature, post-occupancy alterations, and diminution in value.
Driveways, walkways, amenity facilities and parking structures in multi-unit buildings cannot be excluded.
Where a provider sets a claim limit, the minimum is the lesser of the purchase price or $200,000 for a fee simple dwelling, and the lesser of the purchase price or $100,000 for a strata or multi-unit dwelling unit. For common property it is the least of the total original purchase price, $100,000 times the number of units, or $2,500,000.
Owner builders building for personal use under an authorization need not obtain warranty insurance, and they face restrictions on selling during construction or within a prescribed period unless the registrar permits. If you are buying a home from an owner builder, ask a lawyer what protection applies.
Making a claim and what to do next
To claim, you give written notice with reasonable detail to both the warranty provider and the builder, within a reasonable time after discovering the defect and before coverage expires. The law does not set a fixed number of days, so do not wait. You also cannot be required to pay a deductible or sign a release for covered repairs.
- Get a copy of the warranty certificate or policy and note the start date and each coverage period.
- Take dated photos and keep records of any water leaks, cracks or failures.
- Send written notice to both the warranty provider and the builder, and keep proof of delivery.
- Diarize the end of each coverage period well ahead of time.
- Speak to a lawyer if a claim is refused or the provider asks you to sign a release.
Frequently asked questions
Does 2-5-10 mean everything in my home is covered for 10 years?
No. The 10-year layer applies to structural defects, such as the failure of a load-bearing part. Materials and labour are covered for a shorter, staged period, and the building envelope has its own 5-year layer.
Is water damage covered?
Water penetration through the building envelope is covered for at least 5 years where it causes or is likely to cause material damage. Damage from normal wear, owner alterations or failure to mitigate may be excluded.
Do I have to pay a deductible to have a covered defect repaired?
No. Owners cannot be required to pay a deductible or sign a release for covered repairs.
Does a new home always have this warranty?
Generally a new home must be registered for warranty insurance. There is an exception for owner builders building for personal use under an authorization. A lawyer can confirm what applies to your purchase.
Sources
- Homeowner Protection Act (BC Laws) — bclaws.gov.bc.ca
- Homeowner Protection Act Regulation (BC Laws) — bclaws.gov.bc.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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