Understanding the 2-5-10 New Home Warranty in B.C.
What Buyers in North Vancouver & West Vancouver Should Know
If you’re buying a new home in North Vancouver or West Vancouver, one of the biggest protections you have is the 2-5-10 New Home Warranty. This coverage is mandatory for most newly built homes in B.C. — and it’s one of the strongest warranty programs in Canada when it comes to construction defects.
But what does the warranty actually cover? When does it begin? And are there exceptions?
Here’s what you need to know — especially when navigating high-value markets like the North Shore.
Disclaimer: This article provides general information only and is not professional, legal, or financial advice. Always consult relevant experts to understand the full context for your specific purchase.
What is the 2-5-10 New Home Warranty?
Under the Homeowner Protection Act, all homes built by a Licensed Residential Builder must be enrolled in a third-party Home Warranty Insurance Program, which provides:
- 2 years on labour and materials
- 5 years on the building envelope (e.g. water penetration)
- 10 years on the home’s structure
This coverage is tied to the property — not the owner — meaning it remains in place even if the home is resold within that timeframe.
What Does Each Coverage Period Include?
2-Year Labour & Materials Warranty
- 12 months on most defects in labour/materials (for detached homes and non-common strata property)
- 15 months for common property in strata buildings
- 24 months for:
- Major systems like heating, plumbing, and electrical
- Defects in cladding, caulking, windows, or doors that may lead to damage
- Building code violations affecting safety or livability
5-Year Building Envelope Warranty
Covers issues like water ingress, leaking windows, or improperly sealed facades — a critical protection in rainy climates like North Vancouver and West Vancouver.
10-Year Structural Warranty
Covers serious defects affecting load-bearing walls, foundation, framing, and structural integrity.
When Does Warranty Coverage Begin?
It depends on the type of home:
- Detached/fee simple homes: when first occupied or transferred to the first owner (whichever is earlier)
- Strata homes:
- Individual unit: same as above
- Common property: when the first unit in the building is occupied or sold
What’s NOT Covered?
Warranty providers are allowed to exclude certain items. Common exclusions include:
- Landscaping and site drainage
- Detached sheds or garages not used for living space
- Normal wear and tear or shrinkage
- Defects caused by owner-supplied work or damage by others
- Damage from pests, rodents, or natural disasters
Always read the full exclusions in your specific warranty certificate — coverage can vary between providers.
What if I’m Buying an Owner-Built Home?
Homes built under an Owner Builder Authorization are not enrolled in the regular 2-5-10 warranty — but they’re still protected by a 10-year Statutory Protection. This means:
- The owner builder is personally liable for defects in labour, materials, and design
- The responsibility follows the home, so even if you weren’t the original buyer, you may still have recourse
- Claims must be made within 10 years of first occupancy
Tip: If you’re considering an owner-built home in West Vancouver or North Vancouver, verify the warranty status and ask your Realtor to help assess any additional risks.
Are There Other Exemptions?
Yes — not every new building requires warranty insurance. Common exemptions include:
- Manufactured homes
- Hotels, motels, and dorms
- Rental-only buildings under single ownership (with a 10-year restrictive covenant against unit sales)
Homes built on First Nations reserve lands are also exempt — but Treaty lands are not.
How Much Coverage Is Provided?
Coverage limits vary depending on the home type:
Fee Simple Homes (Detached Houses)
- Up to $200,000, or the original purchase price (whichever is less)
Strata Homes
- Individual unit: up to $100,000, or purchase price
- Common property: up to $2.5 million per building, or $100,000 × number of units (whichever is less)
What Happens to My New Home Warranty if the Builder Goes Out of Business?
If your builder disappears, shuts down, or declares bankruptcy, your warranty coverage doesn’t vanish with them. In B.C., the 2-5-10 New Home Warranty is backed by a third-party insurance provider, not the builder themselves.
Your first step with any defect is still to contact the builder directly, since they’re responsible for making repairs under the warranty. But if they can’t—or won’t—fulfill their obligations, you can take your claim straight to the warranty provider. They will step in to coordinate and pay for covered repairs according to the warranty terms.
This means your investment is still protected, even if the company that built your home is no longer around.
Frequently Asked Buyer Questions
“Do I still get a warranty if I’m the second owner?”
Yes — the warranty follows the home, not the owner. You’re covered for whatever time remains on the 2-5-10 policy.
“How do I know if the home is covered?”
Ask your Realtor to confirm the builder’s license and verify warranty registration with BC Housing or the warranty provider. You can also request a copy of the Home Warranty Insurance Certificate.
“What if I find a defect — who do I contact?”
Start by contacting the builder listed on the certificate. If they are unavailable or unable to address the problem, your warranty provider will step in to arrange repairs.
Why It Matters in North & West Vancouver
In high-value markets like North Vancouver and West Vancouver, where new homes can range from $2M to $8M+, buyers need to be confident in what they're getting — especially when buying custom homes, spec builds, or newer strata units.
The 2-5-10 warranty offers peace of mind and real financial protection — but it’s important to know what’s included, what’s not, and how to confirm coverage before removing conditions or completing a purchase.
Final Thoughts
Whether you're buying a luxury build in West Vancouver or a new townhome in Moodyville, understanding the 2-5-10 New Home Warranty helps you protect your investment — and avoid costly surprises.
Have questions about a specific property or home warranty coverage, or need help looking for a new home on the North Shore?
Contact our team today — we’re happy to walk you through it.