What Is a New Home Warranty?

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What Is a New Home Warranty?

Home warranty is something that people don’t think about until they need something fixed on their new home. Unfortunately, for some, by that time it’s too late. We’ve all heard the horror stories out there. The question is how can you avoid these stories happening to you?

Right now, in Manitoba, a large effort is being made to protect homeowners who are buying a newly built home. The Manitoba Home Builders’ Association is now requiring all its members to be part of the New Home Warranty program. There are a few different programs in Manitoba, but they will all follow the same warranty guidelines.

As the guidelines currently sit, the warranty is 1 year on the entire home, and 5 years on the structural components. New legislations have been passed that we are expecting to see come into effect in January of 2018. This will bump up that warranty to 1 year on everything, 2 years on the building envelope and mechanical systems (plumbing, electrical, and heating), and 7 years on structural components.

This is great news for anyone planning to build a new home in the future. We will also see the program extend to cottages and self builds. This means that everyone building a home or cottage of any kind in Manitoba will be required to be register with a warranty program. This has already taken place in several other provinces.

What does being part of the New Home Warranty program mean?

The New Home Warranty means that the builder must register every home they build with the warranty program before they get a permit. This covers the customer right from the start. There is even deposit coverage of up to $25,000 in the case someone was to give a deposit and then the builder fails to start the home.

In the case that there is a warranty issue, the customer would of course first talk to the builder to remedy the issue. If the builder refuses to warranty something that should be covered, or defaults on it in any way, the home warranty program will step in, fix the issue at no cost to the customer, and charge the builder for the repairs.

What steps should you take before you chose your builder?

  • Check to see if the builder is part of the Manitoba Home Builders Association. The association requires them to be a member of a home warranty program, as well as to be safety certified. Just these 2 simple things that are required by Manitoba Home Builders’ Association eliminate many “fly by night” builders. The fact is, that builders who are trying to cut corners, won’t go through the hassle. Remember, currently it’s not required by legislation for everyone to be part of the Homebuilders Association or the home warranty program. It’s up to you to check.
  • Contact the home warranty program to give you some background on the builder. They’ll quickly be able to tell if there have been claims made against the builder.
  • Check references. All good builders should have references that you can contact to find out what previous customer’s experiences have been.

 

At Pine Creek Homes, we are a second-generation builder that has built our reputation on standing by our product and taking care of our customer’s. We are part of the Manitoba Home Builder Association and the New Home Warranty Program. While we’ve never had to deal with the home warranty program for any issues, we are a strong supporter of the program, and are excited to see new legislation coming in to further protect customers when making what is most likely the largest purchase of their life.

Everyone deserves a quality home and it’s not always easy to tell right off the bat who’s out there producing quality and who’s going to be gone at the first sign of trouble. The home warranty program and Manitoba Home Builders’ Association are doing a great job to help this cause. Just make sure you do your homework to ensure that you’re protected when building your dream home.

Walk through the home building process before you start building your new home.

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