SKC Blog - Understanding Warranties on a New Home Build in Nanaimo, BC

Understanding Warranties on a New Home Build in Nanaimo, BC 

If you’re buying or building a brand-new home in Nanaimo, it’s important to understand the protections you get under provincial law. In British Columbia, all new homes built by licensed residential builders must come with a mandatory third-party warranty under the Homeowner Protection Act (HPA).  

This warranty is often referred to as the “2-5-10” warranty, because it guarantees: 

• 2 years on materials and labour: This covers defects in workmanship or materials inside the home (e.g. drywall, finishing), plus major systems, electrical, plumbing, heating, ventilation and components like windows, doors, exterior cladding or caulking if they lead to problems.  

• 5 years on the building envelope: This refers to the shell of your home: walls, roof, windows, doors, exterior finishing and especially protection against water penetration or other envelope-related defects.  

• 10 years on major structural defects: This covers fundamental structural components such as the foundation, framing, load-bearing walls, and other aspects that affect the home’s long-term stability.  

Because this warranty is legally required, it must be arranged before construction begins (or before the building permit is issued).  

An important benefit of the warranty: it’s attached to the home, not the original owner. That means if you buy a new home, and later re-sell it before the warranty expires, the coverage transfers to the next owner.  

However, not all homes are automatically covered. For example, homes built under an “owner-builder authorization” (i.e., where the property owner builds the home themselves) may be exempt from mandatory third-party warranty insurance. In those cases, buyers should carefully review any statutorily required protections and insist on disclosure from the seller.  

Finally, it’s a good idea for any new homeowner to read the warranty documents carefully, understand what is, and isn’t, covered (for example, cosmetic wear-and-tear, landscaping, or routine maintenance typically are not covered), and make sure to report any defects promptly to take advantage of the warranty.  

Navigating the specifics of a new home warranty, especially concerning exemptions or owner-built properties, can be complex. Don't leave your most important investment to chance. 

Contact us today for personalized guidance on your Nanaimo new home build or purchase and ensure you fully understand your 2-5-10 protection.