When buying a home anywhere, it is important to make sure it comes with solid warranty. This is as true for infill homes Calgary as any other types of homes. Starting in February 2014, the government of Alberta is going to make it mandatory for all builders to provide home warranty coverage for all new homes through the New Home Buyer Protection Act. In anticipation of this new law, some banks are already requiring homebuyers to have home warranties for financing.
Currently, there are mainly two types of home warranties in Alberta: the Alberta New Home Warranty Program (ANHWP) and the National Home Warranty Program (NHWP). There are also other less well known warranty programs such as Blanket Home Warranty Program (BHWP) and Progressive Home Warranty Program (PHWP). All these different home warranty programs offer varying degrees of protection to homeowners.
Among the home warranty programs, the Alberta New Home Warranty Program (ANHWP) is of special importance to buyers of infill homes in Calgary. The program provides the following coverage:
- Deposit protection: In the event that a builder member of the program defaults or becomes insolvent or goes bankrupt, the program provides coverage for your deposit of up to 20% of the purchase price not exceeding $100,000.
- Builder Performance Protection: In the event that the builder member fails to complete your house, the program provides coverage for up to $50,000 (which includes a legal fee of up to $3,000) towards the completion costs or the discharge of the builder's liens. The program also covers the administration, coordination and supervision for the completion of the home.
- First Year Workmanship and Materials Protection: In the event that the builder member fails to meet his warranty obligations, the program provides coverage for up to $100,000 for the repair of defects in materials and workmanship within one year of the date you have taken possession. This amount also includes the costs related to the Five Year Structural Integrity Warranty Protection.
- 5 Year Structural Integrity Protection: The balance of the $100,000 of the First Year Workmanship and Materials Protection at the end of the first year can be used to repair major structural defects affecting the load bearing components of your home within the next five years.
- 10 Year Structural Integrity Protection (optional): This optional coverage extends the Structural Integrity Protection by an additional five years. It makes available the balance of the $100,000 of the Structural Integrity Protection for the repair major structural defects.
- Additional Living Expenses Protection: The program provides coverage for additional living expenses you may incur while the completion or repair of your home covered by warranty is underway. The maximum amount you may be reimbursed is $6,000 over the life of the warranty. To be eligible, the additional living expenses must be pre-approved and verifiable.
Want to learn more about the warranty programs offered by Sunset Homes? Give us a call today.