Many time we hear: "this complex is almost new". It's still covered under the 2-5-10, or at least the 5-10 home warranty insurance. So what? What does that mean?
Well, as of 1999, all residential builders 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 before they obtain a building permit.
If you're thinking of buying a lot and building your own home, then your construction project falls under a different category. You are then called "an owner builder".
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.
There, this is rougly what the 2-5-10 means. More to come.