Your new home is an in­vest­ment: Pro­tect it!

The Telegram (St. John’s) - Home Buyers' Guide - - METRO REGION -

A New Home War­ranty nor­mally cov­ers the amount of the de­posit placed on the home in the event of a de­fault by the builder, de­layed clos­ings/oc­cu­pancy and of­fers an an­nu­ally de­creas­ing amount of cov­er­age on ev­ery­thing from cos­metic de­fects for one to ten years from the time the home is oc­cu­pied and the Cer­tifi­cate of Com­ple­tion. Other typ­i­cal cov­er­age de­tails in­clude:

Year 1: All ma­te­ri­als and work­man­ship are cov­ered, in­clud­ing wa­ter pen­e­tra­tion; all ma­jor sys­tems (i.e. roof, plumb­ing, elec­tri­cal, and heat­ing sys­tems), and ma­jor struc­tural de­fects.

Year 2: Ma­jor struc­tural de­fects. Some war­ranties also cover wa­ter pen­e­tra­tion (through win­dows, foun­da­tion, roof, sid­ing, etc), ex­te­rior sid­ing dam­age, and/or de­fects as­so­ci­ated with the homeʼs ma­jor sys­tems un­til this point.

Year 5: Ma­jor struc­tural de­fects. Some war­ranties also cover wa­ter pen­e­tra­tion through the foun­da­tion.

Years 5-10: Ma­jor struc­tural de­fects. Not all homes are cov­ered for 10 years. Some war­ranties only cover the home for 5 years, while oth­ers cover the home for 7 years. The pur­chase of an ex­tended war­ranty is usu­ally re­quired to ex­tend the war­ranty term to 10 years.

Things that are not cov­ered un­der most war­ranties in­clude dam­age caused by home­owner or movers, work per­formed by the home­owner, or dam­age caused be­cause of neg­li­gi­ble main­te­nance by the home­owner (i.e. wa­ter leak­age caused by poor grad­ing).

Prior to the one year an­niver­sary of mov­ing into the home, it should be in­spected by a pro­fes­sional home in­spec­tor and a list of the de­fi­cien­cies found in the in­spec­tion re­port should be sub­mit­ted to the builder in writ­ing. It is im­por­tant to give the builder the op­por­tu­nity to cor­rect any prob­lems, prior to con­tact­ing the war­ranty com­pany.

Each of the war­ranty pro­grams avail­able through­out Canada has its own spe­cific terms and con­di­tions. The rights and re­spon­si­bil­i­ties of the home­owner for each war­ranty are usu­ally doc­u­mented in an easy to un­der­stand home­owner in­for­ma­tion pack­age. New home buy­ers should con­tact their lo­cal home builders as­so­ci­a­tion to ob­tain spe­cific in­for­ma­tion re­lated to lo­cal new home war­ranty cov­er­age.

Newspapers in English

Newspapers from Canada

© PressReader. All rights reserved.