New home warranty is pretty standard around Saskatoon these days. But there are still quite a bit of gray areas when it comes to what is covered and what isn’t.
New home warranty typically provides coverage for certain components of a newly built home,
protecting you against defects and issues that may arise after you move in.
The exact coverage and terms of a new home warranty can vary depending on the provider,
but here are some general expectations:
One Year Coverage
For the first year of ownership, your builder will be responsible
for any and all issues that arise.
Typically, builders will do a one-year walkthrough to identify and repair any issues necessary. Beyond that each builder does things different. At Spruce, we make sure each client knows that our phones are always on and we encourage clients to let us know of any issue that arises.
However, even if we don’t hear from clients within the one-year period, we will check in a few times to make sure that everything is operating as it should!
Tip: The first year can be one of the major differences between home builders. The reality of home warranty is that there is no absolute black and white rule on what is and isn’t covered. There are some things that are obvious (mechanical, appliances, etc.) but there are a lot of things that are not (workmanship, quality, etc.).
You want to make sure that you work with a builder that stands behind their work and honours the work in the gray area. There is no fool proof way of ensuring this, but while you are interviewing builders and talking to referrals, make sure to ask how the warranty period went from the clients perspective.
Coverage For Major Systems:
New home warranty also covers major systems in the home, such as heating, ventilation, and air conditioning systems. This typically lasts for 2 years and provides protection against defects or failures in
these systems covering unnecessary expenses that may fall on you in case of failure.
Coverage For Water Leakage:
Your home has multiple guards against water leakage, but in the event water enters the home, it will typically be covered for 5 years. This could come from cracks in foundations, weeping tile failure, etc. If
water is managed properly this should not be a concern, but the warranty is there for your peace of mind.
Tip: Remember that warranty does not relieve you of home maintenance. It’s important to follow instructions given by your home builder. Read instruction manuals on general maintenance to ensure your warranty is not void.
For example, if you do not change furnace filters regularly or manage exterior water, those will not be covered under warranty.
Coverage For Structural Defects:
A new home warranty covers structural defects, such as issues with the foundation, walls, roof, and load-bearing components of the home. This can provide peace of mind, as these types of defects can be
costly to repair and can significantly impact the safety and stability of the home.
Coverage For Appliances And Fixtures:
Typically, this isn’t something that is covered for more than one year. However, there can be extended warranties purchased on some of these items. If extended warranty is something you are
interested in, discuss it with your home builder upfront so that they can take care of it for you!
Tip: Typically speaking, material/labour that is not supplied by your home builder will not
be covered by home warranty. If you are supplying some materials, make sure you
understand the risks you are taking before signing the dotted line.
Deductibles And Limitations:
New home warranties may have deductibles. These are the amounts that the homeowner is responsible for paying out of pocket before the warranty coverage kicks in. Additionally, there may be limitations on what is covered, such as exclusions for certain types of damage or wear and tear, etc.
This is another reason why dealing with a reputable home builder that stands behind their work is important.
For example, if you are two years into your warranty period and a small issue arises, it may be more beneficial to deal with your builder directly rather than paying the warranty provider a deductible to simply come and have them determine whether the issue will be covered or not.
Claim Process:
If a defect or issue covered by the warranty arises, the homeowner will need to follow the claim process outlined in the warranty.
This may involve contacting the builder or warranty provider (we recommend talking with us first so we can help get you through the correct channels), providing documentation of the issue, and allowing for inspections or repairs to be conducted by authorized contractors.
It’s important to carefully review the terms and coverage of a new home warranty before purchasing a new home, and to ask any questions or seek clarifications as needed.
At Spruce Homes, we use Progressive Home Warranty. We understanding what is covered, for how long, and what the claim process entails. We can help set expectations and be prepared in case issues arise with your new home!