February 13, 2024

Whether you are a first-time buyer or a seasoned homeowner, understanding the ins and outs of Alberta’s New Home Warranty is crucial for protecting your investment and ensuring peace of mind as a new homeowner. By familiarizing yourself with the specifics of your home’s warranty, you’ll be equipped with the knowledge you need to make well-informed choices regarding your coverage.

What is the Alberta New Home Warranty Program?

The Alberta New Home Warranty Program was established in 2014 by the Government of Alberta, requiring all new residences (including residential homes such as condos and manufactured homes) to be covered by home warranty. This program protects homeowners by covering construction defects and ensuring compliance with quality standards in Alberta’s new home construction industry. Under the New Home Buyer Protection Act, all new home builders in Alberta must enroll their properties with a warranty provider and ensure the their coverage meets all mandated requirements.

Brand new townhome under construction in Calgary.

The 1-2-5-10 New Home Warranty

1-2-5-10 outlines the specific warranty periods for different components of a new home (i.e. materials, systems and structural elements), offering homeowners peace of mind knowing they are protected from potential defects. Here’s what you need to know about 1-2-5-10 New Home Warranty in Alberta

One-Year Builder’s Warranty:

During the first year of homeownership, the builder is responsible for addressing any defects related to workmanship/labor and materials. This includes issues with flooring, doors, windows, countertops, and other fixtures installed during construction.

Two-Year Builder’s Warranty:

For the first two years of homeowner occupancy, the builder provides coverage for defects in the home’s delivery and distribution systems (i.e., mechanical systems). This includes plumbing, heating, air conditioning, electrical and more. 

Five-Year Building Envelope Warranty:

The building envelope warranty covers defects related to the home’s “shell,” protecting the property from the elements. This may include coverage for everything from roof leaks and foundation issues to other problems that may affect the overall waterproofing of the property.

Ten-Year Structural Warranty:

The 10-year structural warranty offers protection for major structural defects that compromise the load-bearing components (and safety) of the home. It covers issues such as the foundation, load-bearing walls, and other essential structural components.

Home builder installing electrical on the exterior of a new home.

Benefits of the 1-2-5-10 New Home Warranty 

Comprehensive Coverage 

The different warranty periods cover various aspects of the home, from workmanship and materials to structural integrity, ensuring comprehensive protection for homeowners.

Builder Accountability 

The warranty program holds builders accountable for any defects or issues that may occur during the specified warranty periods. This encourages builders to maintain high-quality construction standards.

Financial Protection

In case of covered defects, the warranty program provides financial coverage for warrantable defects, relieving homeowners of potentially costly repairs. 

Increased Resale Value

Having a transferable warranty can also boost your new home’s resale value. Potential buyers will feel more confident knowing that the property is protected by the ANHWP.

Peace of Mind

The 1-2-5-10 New Home Warranty program offers homeowners peace of mind, knowing that their investment is protected and that any warrantable defects within their new home will be addressed.

The 1-2-5-10 coverage provided by the Alberta New Home Warranty Program is a valuable asset for homebuyers in Alberta. It offers comprehensive coverage for different components of a new home, ensuring peace of mind and builder accountability. When buying a new construction home, you can have confidence knowing your investment will be protected for years to come. 

Are you thinking about buying a new home in the capital region? Landrex is one of central Alberta’s leading land developers, having built many premier, residential communities around the Edmonton area. For more information on our latest new community developments, or the many fantastic new home builders with whom we partner, please reach out to us. 

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