2-5-10 Home Warranty

The 2-5-10 home warranty is mandatory third-party home warranty insurance required under the Homeowner Protection Act, SBC 1998, c. 18, for new homes built by licensed residential builders in BC. It provides coverage for 2 years on labour and materials, 5 years on the building envelope, and 10 years on structural defects. The warranty must be provided by an approved home warranty insurance provider authorized under the Act.

Under the Homeowner Protection Act, SBC 1998, c. 18, licensed residential builders constructing new homes in BC are required to provide third-party home warranty insurance meeting the 2-5-10 coverage requirements. Owner-builders who construct for their own occupancy may apply for an exemption from the third-party insurance requirement under the Act, but general eligibility and conditions apply—verify current exemption criteria with a BC lawyer or notary before proceeding.

The 2-year coverage applies to defects in labour and materials, covering items such as defective workmanship and materials that fail to meet the prescribed building standards under the Homeowner Protection Act and its regulations. Coverage begins on the date of the initial possession or occupancy. Verify specific coverage limits, exclusions, and sub-limits for appliances or fixtures with your warranty provider, as these are set by regulation and may vary.

The 5-year coverage protects against water penetration into the building envelope due to defects in design, materials, or labour, as specified under the Homeowner Protection Act, SBC 1998, c. 18, and its regulations. The building envelope generally includes the foundation, roof, walls, windows, and doors that separate indoor conditioned space from outdoor air or ground moisture. For precise definitions and exclusions, refer to the regulations under the Act or consult your warranty provider.

The 10-year coverage applies to major structural defects that cause the home to be unsafe or unfit for occupancy, as defined by the Homeowner Protection Act, SBC 1998, c. 18, and its regulations. This typically includes defects in load-bearing elements such as foundations, beams, columns, and structural framing. Cosmetic issues, normal wear and tear, and items not integral to structural integrity are generally excluded—verify specifics with your warranty provider.

Yes, new strata units (condominiums) in BC built by licensed residential builders are required to have the 2-5-10 warranty coverage under the Homeowner Protection Act, SBC 1998, c. 18. For common property and limited common property, the warranty is held by the strata corporation under the Strata Property Act, SBC 1998, c. 43. Individual strata lot owners receive coverage for their own units—verify the division of coverage and claim procedures with the warranty provider and the strata corporation.

Claims must be filed directly with the third-party home warranty insurance provider named in your warranty certificate, following their prescribed notice and documentation procedures. The Homeowner Protection Act, SBC 1998, c. 18, and regulations set out timelines and requirements for notice of defects. Failure to provide timely written notice of a defect within the applicable coverage period may limit or bar your claim—verify your warranty provider's specific claim procedures and deadlines immediately upon discovering a defect.

The British Columbia Financial Services Authority (BCFSA) is responsible for oversight of home warranty insurance providers under the Homeowner Protection Act, SBC 1998, c. 18 (as of 2026-07-27 — verify current regulatory structure). BCFSA maintains a registry of authorized warranty providers. Before purchasing a new home, confirm that the builder is licensed and that the warranty provider is approved by checking the BCFSA public registry at www.bcfsa.ca or verify with a BC lawyer or notary.

The 2-5-10 warranty is third-party insurance, meaning the warranty provider—not the builder—is ultimately responsible for honouring valid claims within the coverage periods, even if the builder is bankrupt, defunct, or uncooperative. Under the Homeowner Protection Act, SBC 1998, c. 18, the approved warranty insurer must respond to and settle eligible claims according to the terms of the warranty. If a builder fails to address a defect, file a claim directly with the warranty provider following their procedures.

Yes, the 2-5-10 home warranty coverage runs with the home and automatically transfers to subsequent owners for the remainder of the original coverage periods (2, 5, and 10 years from initial possession), as required under the Homeowner Protection Act, SBC 1998, c. 18. The warranty certificate and enrollment documentation should be provided to the buyer during the conveyancing process. Verify that the warranty documentation is assigned or transferred according to the warranty provider's procedures and ensure it is disclosed in the Contract of Purchase and Sale.