Are you considering upgrading to a brand new home? Moving into a new property is an incredibly exciting process for the first time and experienced owners alike, with plenty of potential and perks ready to be explored. If you’re like most homeowners, you’re also eager to ensure your investment and to guarantee your new home lasts you for plenty of years to come. Enacted within Alberta in 2014, the New Home Buyer Protection Act (NHBPA) is designed to safeguard buyers and their families by holding builders accountable to higher standards that protect you from unexpected complications.
Alberta’s New Home Warranty Program requires building contracts to submit evidence of warranty protection with homes being constructed after the law came into place offering a “1-2-5-10” policy. Learn more about this policy below.
Exploring The 1-2-5-10 Model
Under the terms of the NHBPA, newly-built homes must have the following coverage
1 Year On Labour and Materials
The NHBPA mandates a one year warranty for any problems that may arise due to labour or materials used. This includes any difficulties with how your home was constructed, and/or the materials used during construction, including elements like flooring, trim, and fixtures. Coverage lasts for one full year from the beginning date of your warranty.
2 Years For Delivery/Distribution Systems
In accordance with the policy, flaws in the labour and/or materials associated with the heating, plumbing, and electrical systems within the home are covered for up to 2 years after the warranty takes effect.
5 Years For the Home’s Envelope
Your home’s envelope refers to the group of elements that help separate your house from the outside environments. This includes your roof, wall framework, windows, and more. The policy mandates 5 years of coverage for such elements for single-family residences.
10 Years For Structural Components
Structural components such as the frame and slab of single-family homes. This covers material and/or labour errors that either lead to the breakdown of a weight-bearing element in a new home or result in structural wreckage that negatively impacts a property owner’s safety and well-being inside the home.
If a flaw makes your home unfit to occupy, or the warranty work is ongoing, homeowners will receive up to $150 per day up to a maximum of $15,000 to cover living costs.
Limits On Warranty Coverage
For single-family homes, your warranty covers either the property’s sale price (excluding land) or $265,000 (whichever amount is smaller).
Coverage Start Dates
Your coverage date beings either the day you first move into the new home, the day a licensed service commission authorizes you to move in, or the day the home title is officially registered in your name (whichever happens first).
Optional Additional Coverage
Many homeowners choose to include additional coverage such as pre-possession coverage, which extends beyond the stipulations mandated by the 1-2-5-10 model.
Need More Information? Abbey Platinum Master Built Is Here To Help!
Abbey Platinum Master Built is proud to adhere to all standards outlined by the NHBPA. As a preferred builder in Central Alberta, we strive to provide our owners with homes built to exceptional standards that accommodate their unique tastes. Contact us today to learn more!