Home Warranty Insurance
A Guide for South Surrey Realtors
Home Warranty Insurance
Introduction
In the realm of real estate, staying informed is paramount. As a South Surrey realtor, it’s vital to grasp the ins and outs of home warranty insurance, a crucial aspect of residential property transactions. In this simplified guide, we’ll break down the essentials of 2-5-10 Year Home Warranty Insurance in British Columbia.
What’s Home Warranty Insurance?
New homes built after July 1, 1999.
All new homes must be constructed by BC Housing-licensed builders.
The homes must be covered by approved insurance providers.
Coverage Breakdown
2 years for labor and materials (with certain limits).
5 years for the building envelope, including water issues.
10 years for structural concerns.
Labor and Materials Details
12 months for detached homes and non-common property in strata units.
15 months for common property of strata buildings.
24 months for all buildings for defects in materials and labor related to systems (electrical, plumbing, HVAC, etc.).
Commencement Dates
Custom homes: Date of first occupancy or occupancy permit.
Spec. homes: Date of first occupancy or title transfer to the first owner.
Strata units: Date of first occupancy or title transfer.
Strata common property: Date of first-unit occupancy or title transfer in the building.
What’s Not Covered?
General exclusions: Landscaping, non-residential structures, commercial areas, roads, etc.
Defect-related exclusions: Wear and tear, owner-supplied materials, damage by others, pests, and more.
Checking Coverage
Homeowners can use the Residential Construction Performance Guide on the BC Housing website to check if a defect might be covered.
Coverage Limits
Fee simple homes: Lesser of the purchase price or $200,000.
Strata units: Lesser of the purchase price or $100,000.
Strata common property: Lesser of $100,000 per unit or $2.5 million per building.
Conclusion
Understanding Home Warranty Insurance is vital for South Surrey realtors like Jared Gibbons. It not only empowers you to guide your clients effectively but also solidifies your reputation as a reliable and knowledgeable real estate professional. Keep your clients protected and informed in every real estate deal.