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Prior to taking possession of your newly built home you go through a complex process filled with the challenges of designing a home that is tailored to your needs and specifications, getting the plans approved, and building it accordingly. It is a lot of work and also a serious investment, and it is only natural to be concerned about protecting it down the road. If you chose to build your home in Alberta, you are lucky to benefit from the Alberta New Home Warranty Program.

First of all, you need to ask your builder if they are member of the program. Once that is settled, you need to understand the basics on Alberta’s new home warranty so that you know what to expect. It is very important that you understand the role of the Alberta New Home Warranty Program and that you don’t perceive it as a government organization or an insurance company. The Program is a private, nonprofit company that supports and protects new homebuyers in Alberta through a full range of coverage options. The coverage builds upon the warranty typically provided by homebuilders, which ensures that homebuyers benefit from financial protection all the way through the building process.

Alberta’s New Home Warranty Program recognizes the contractual and long term relationship between homebuilders and homebuyers and gets involved in a problem only after the homeowner has attempted to resolve the issues with the builder first. If the homeowner asks for assistance, the Program has a complex resolution process that involves mediation, arbitration, and conciliation procedures. However, Alberta New Home Warranty Program does not deal with contractual issues. In addition to the resolution process, the program also serves as an educational resource for new homebuyers. It is also important to understand what the new home warranty program covers in Alberta. Here are some details about specific coverage for single-family homes:

  • Deposit protection means that you will be returned your deposit in case of default by the builder member of the program. Deposit protection covers you for up to 20% of the purchase price to a maximum of $100,000.
  • Builder performance protection covers you for up to $50,000 in case the builder fails in completing a home as contracted;
  • First year workmanship and materials protection up to $100,000 covers the costs with the repair in workmanship and materials during the first year after taking possession if the builder does not meet warranty obligations. This includes the five year structural integrity protection.
  • First year structural integrity protection refers to the unused coverage amount of the first year materials and workmanship warranty that can be now used to repair major structural defects in the first five years. This protection covers costs of up to $100,000.
  • Optional ten-year structural integrity protection is also available in the Alberta New Home Warranty Program. This type of extended coverage protects you for a total of ten years for any major structural defects.
  • Additional living expense protection is a great new home warranty protection where you are reimbursed up to $6,000 in pre-approved living expenses that can be verified. These expenses are associated with excess living costs incurred while the work on your home was being completed.

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