Home Warranty Homeowner Protection Office
As of 1999, all residential builders1 in British Columbia are required to be licensed by the Homeowner Protection Office and arrange for third-party home warranty insurance on proposed new homes prior to obtaining a building permit. In geographic areas where building permits are not required for new home construction, licensing and warranty insurance must be in place prior to the commencement of the construction. Owner builders are exempt from the licensing and warranty insurance requirements.
Home warranty insurance can only be provided by insurance companies approved by the provincial Financial Institutions Commission. Minimum coverage and allowable exclusions for third-party home warranty insurance are set by legislation. As a minimum, homes built by Licensed Residential Builders must have 2-5-10 year home warranty insurance – the strongest construction defect insurance in Canada. Coverage includes 2 years on labour and materials (some limits apply), 5 years on the building envelope and 10 years on the structure of the home.
1“residential builder” means a person who engages in, arranges for or manages all or substantially all of the construction of a new home, or agrees to do any of those things, and includes developer and general contractor.
