NEW HOME WARRANTY COVERAGE IN BRITISH COLUMBIA
New multi-unit residential buildings in British Columbia are covered by 2-5-10 home warranty insurance. The warranty provides different coverage periods depending on the type of defect and the building component involved.
For strata corporations, the primary warranty periods affecting common property are:
15 MONTHS – COMMON PROPERTY
The 15-month warranty provides coverage for defects in materials and labour affecting the common property of multi-unit strata buildings.
2 YEARS – MAJOR MECHANICAL AND ELECTRICAL SYSTEMS
The 2-year warranty provides coverage for defects in materials and labour associated with major mechanical and electrical building systems, including electrical, plumbing, heating, ventilation and air conditioning systems.
5 YEARS – BUILDING ENVELOPE
The 5-year warranty provides coverage for the building envelope, including components that separate the interior of the building from the exterior. The warranty also includes unintended water penetration.
10 YEARS – STRUCTURAL DEFECTS
The 10-year warranty* provides coverage for defects in materials and labour that result in the failure of a load-bearing part of the building. It also covers defects that cause structural damage and affect the use of the building for residential occupancy.
* Reliance Asset Consulting does not currently provide structural assessments or 10-year structural warranty reviews.
The specific coverage applicable to a property is established by its home warranty insurance policy. Strata corporations should review their policy to confirm the applicable coverage and expiry dates.
WHY COMPLETE A WARRANTY REVIEW?
A warranty review helps a strata corporation identify and document deficiencies before the applicable warranty period expires. Identifying these items while warranty coverage remains in place provides an opportunity for deficiencies to be addressed through the warranty process rather than becoming a future repair or remediation expense for the strata corporation. The review also provides time to document the deficiencies and notify the builder and warranty provider before the applicable coverage expires.
OUR WARRANTY REVIEW SERVICES
Reliance Asset Consulting provides warranty reviews for the 15-month common property, 2-year major mechanical and electrical systems, and 5-year building envelope warranty periods. Each review is completed prior to the applicable warranty expiry date and focuses on the building components and systems relevant to that stage of the warranty.
15-MONTH COMMON PROPERTY WARRANTY REVIEW
The 15-month warranty review consists of a visual inspection of accessible common property areas to identify deficiencies in materials and workmanship. The review includes common interior areas, parkades, storage and service areas, common property fixtures and other accessible common property components.
As part of the review, questionnaires are distributed to strata lot owners to identify concerns or deficiencies they have observed within their units or affecting common property. Questionnaire responses are reviewed prior to completion of the report, and relevant items are incorporated into the findings where applicable.
2-YEAR MECHANICAL AND ELECTRICAL WARRANTY REVIEW
The 2-year warranty review focuses on the building's major mechanical and electrical systems. Accessible mechanical and electrical equipment and service areas are inspected for visible deficiencies in materials, installation and workmanship.
5-YEAR BUILDING ENVELOPE WARRANTY REVIEW
The 5-year warranty review focuses on the exterior building envelope and conditions that may result in unintended water penetration. The review includes accessible exterior walls and cladding, windows and doors, roofs, balconies and decks, flashings, sealants and other building envelope components.