Tarion Warranty Coverage in Ontario: What Years 1, 2, and 7 Actually Protect

New home buyers in Ontario often hear "Tarion warranty" described as if it's a single, flat promise: your home is covered for seven years, full stop. It isn't quite that simple, and misunderstanding the structure can leave you surprised when a claim is denied.

Tarion's statutory new home warranty, administered under the Ontario New Home Warranties Plan Act, is built around tiered coverage periods — commonly described as Year 1, Year 2, and Year 7 — and each period protects a different, progressively narrower set of issues. The seven-year period in particular is not blanket coverage of every possible deficiency; it's specifically about major structural defects.

Here's how the three periods generally break down.

The Three Warranty Periods at a Glance

Year 1: The Broadest Protection Period

The first year of coverage is the widest in scope. It's generally understood to address defects in work and materials — meaning construction that doesn't meet the standards a new home is expected to meet — along with related issues identified during your pre-delivery inspection and in the months after you move in.

Because this period covers the most ground, it's also the period where most claims are filed. Documenting deficiencies promptly and in writing, rather than waiting, matters throughout this period.

Year 2: A Narrower, Defined List

Coverage in the second year is more specific than Year 1. Rather than covering the same broad range of workmanship issues, it's generally limited to particular systems and categories of problems identified in Tarion's own published construction performance standards.

Because the Year 2 list is narrower and more technical than Year 1, it's worth checking Tarion's current published guidelines — or asking your lawyer — if you're unsure whether a specific issue you've discovered still falls within coverage at this stage.

Year 7: Major Structural Defects Only

The seven-year period is the one most homeowners have heard of, and it's also the most misunderstood. It does not mean every possible defect remains covered for seven years. It addresses major structural defects specifically — generally understood as defects serious enough to affect the structural integrity of load-bearing elements of the home.

A cosmetic issue, a finishing defect, or a system malfunction that would have qualified during Year 1 or Year 2 does not automatically qualify as a major structural defect just because it's discovered later. If you're evaluating whether something you've found falls into this category, that's worth a direct conversation with a lawyer or with Tarion rather than an assumption either way.

Maximum Coverage Amounts

Tarion's statutory warranty coverage is also subject to a maximum dollar limit, which differs by home type. As of mid-2026, for agreements signed on or after July 1, 2023, the maximum is $400,000 for freehold homes and $300,000 for condominium units — figures change, so verify the current amounts before relying on them for your own situation.

This maximum applies to the warranty coverage itself and is separate from Tarion's deposit protection limits, which are a different figure covering a different risk (the loss of your deposit if a builder fails to close, rather than a defect in the finished home).

How the Warranty Years Connect to Your Claim Paperwork

Coverage periods and claim forms are related but distinct concepts. Tarion generally requires homeowners to submit specific forms at specific points in the warranty timeline to preserve a claim for issues identified during that period — commonly known as the 30-Day Form and the Year-End Form, each tied to a different window early in your coverage. Missing a form's current submission window can affect your ability to claim for items you would otherwise be entitled to have addressed, so it's worth confirming the exact deadlines that currently apply through your Tarion MyHome account rather than relying on assumptions.

Frequently asked questions