Everything You Need to Know About New Home Warranty in Alberta

Buying a new home is a big investment, and it’s important to protect that investment with a warranty. In Alberta, all new homes must come with a warranty. New homes in Alberta are covered by either AB New Home Warranty or Progressive Home Warranty. 

Alberta’s New Home Buyer Protection Act (NHBPA) came into effect on February 1, 2014 to protect the interests of home buyers, home builders, and new home warranty providers alike. The NHBPA established a requirement that all new homes built for sale or under a construction contract must be covered by home warranty insurance or be exempted from this requirement through an authorization from the New Home Buyer Protection Office of Alberta Municipal Affairs. For more information on Alberta’s New Home Buyer’s Protection CLICK HERE.

The warranty program that provides coverage to new homeowners for various defects in their homes. The program is designed to protect homeowners from the financial burden of unexpected repairs and replacements.

What Does the Home Warranty Cover?

The new home warranty covers various defects in your new home

1 Year Materials & Labour: this covers any defects in materials and labour (flooring, trim)

2 Year Delivery & Distribution Systems: coverage for defects in materials and labour for delivery systems. (heating, electrical, plumbing)

5 Year Building Envelope: covering defects in the system of components that separate conditioned from unconditioned space (roof, exterior walls)

10 Year Structural: Load bearing components (foundation, frame)

Builders are held accountable to repair items as outlined in the Construction Performance Guide from the Alberta Government.

How Long Does the Warranty Last?

The warranty program covers new homes for up to ten years after possession and is transferrable to new owners if you sell. 

How Do You Make a Claim?

If you discover a defect in your new home, you should contact the builder or developer first to discuss the issue. If the issue cannot be resolved, you can make a claim through the warranty provider. To make a claim, you’ll need to provide documentation of the defect and any attempts to resolve it with the builder or developer.

How Do You Find a Builder Covered by the New Home Warranty?

To find a builder covered by the home warranty, you can visit the program’s website and search for builders in your area. You can also ask your real estate agent or contact the Homeowner Protection Office for a list of registered builders.

Is Home Warranty Mandatory?

Yes, the new home warranty is mandatory for all new homes built in Alberta. Builders and developers must register with the program and provide coverage for their new homes.

If you’re in the market for a new home in Alberta, be sure to check that the builder or developer is registered with the ANHWP and that your new home is covered by the program.

When Does The Home Warranty Start?

For single-family homes: the earliest of (1) the date a new home is first occupied; (2) the date an accredited agency, accredited municipality, or accredited regional services commission grants permission to occupy a new home; and (3) the date the transfer of title to a new home is registered.