What does a new home warranty cover?

In buying a new home — just as in buying a new car or a major appliance — a warranty should be included in your purchase.

There are virtually thousands of material components used in the construction of a building and there are dozens of different professions, trades, and other skills used to design and build. Only an independent non-profit warranty program like that offered by the New Home Warranty Program of Manitoba Inc. (MBNHWP) can bring all these elements together under one comprehensive warranty.

The MBNHWP program offers a five year warranty broken into two major categories:


1. Year One — materials and workmanship

The program warrants that, during the first year, the registered builder will repair defects in materials and workmanship as defined in the program’s Warranty Certificate. The program will ensure that the necessary work is complete up to a maximum of $50,000 per residential unit. Materials and workmanship covered by the grogram include those supplied and installed by the registered builder, its employees and those trades and others contracted directly by the registered builder.


2. Years One to Five — major structural defects

Structural defects affecting the load bearing portion of your new home are protected over the entire five year period up to maximum of $50,000 per residential unit. In the event you are required to move out while major structural repairs are underway, the warranty allows for an additional relocation expense up to a maximum of $3,000.


Deposit coverage

The program provides coverage in relation to down payments provided to registered builder members, up to a maximum of $25,000 per new home. Included in the deposit coverage are trust deposits given by a REALTOR® to the begistered builder, with written authorization from the purchaser.


What types of homes are covered?

The Program covers new homes built on site with permanent foundations and new ready-to-move homes (RTMs) moved onto a permanent foundation. These new homes must have been built for sale or under contract by a registered builder member of the program. This includes single detached homes, semi-detached homes, homes located within First Nation lands, row housing, duplexes, and condominium units located within buildings up to 3 stories in height. Homes not eligible for coverage are renovated homes or additions, recreational homes, mobile homes, and condominium units located in buildings greater than three stories in height.


What happens if I sell my home?

If the home is sold during the warranty period, any remaining coverage stays with the home for the benefit of subsequent buyers. This is an excellent selling feature! The best part is that you don’t need to do a thing as the warranty is automatically transferable. All that’s asked is that you provide the subsequent homeowners with your warranty certificate.


What about those builders who offer their own warranty?

A builder’s own warranty is only as good as the level of service the company wishes to provide, or for as long as the company remains in business.

Along with our registered builders, the New Home Warranty Program strives to meet the mission Statement: “To provide warranty protection for new home buyers and to support the building industry in its goal to achieve excellence in building standards.”

Ask if your builder is a member of MBNHWP or visit mbnhwp.com to find a list of registered builders, as well as more detailed information about this program. Your REALTOR® can also answer any questions you may have about your new home and guide you through the entire building process.


This article was published in a previous issue of the Winnipeg Regional Real Estate News.

— mbnhwp.com