The short answer
The 2-5-10 framework covers specified construction defects for different periods: materials and labour, the building envelope and structural defects. It is not a promise that every issue is covered for ten years.
BC Housing: home warranty coverageMaterials and labour
Limits apply: some coverage periods are 12 or 15 months.
Building envelope
Includes coverage for water penetration, subject to the policy.
Structure
Check the policy’s scope and commencement date.
The basics
What the 2-5-10 warranty actually is
In BC, new homes built by a licensed residential builder must carry home warranty insurance. The minimum standard is called 2-5-10. The numbers are years, and each one covers a different kind of problem. BC Housing licenses builders and oversees this system. The insurance itself comes from a private warranty provider.
The first layer covers materials and labour. For detached homes and the non-common parts of a strata unit, that lasts 12 months. For common property in a multi-unit strata, it lasts 15 months. Major systems get 24 months: electrical, plumbing, heating, ventilation and air conditioning. So do exterior cladding, windows, doors and defects that make the home unfit to live in.
The building envelope is the shell that keeps weather out. It is covered for five years, including unintended water getting in. Structural defects in load-bearing parts are covered for ten years.
Why it matters
Why the dollar limits and dates matter
Coverage has a ceiling. For a detached home it is the lesser of the first owner’s purchase price or $200,000. For a strata unit it is the lesser of that price or $100,000. Common property is capped at the lesser of $100,000 per unit or $2.5 million per building.
Coverage stays with the home, not the owner. If you buy a home that is a few years old, you get whatever time is left. Coverage also starts at different times for different home types, so ask for the real start date in writing.
How it works
How to check warranty coverage before you buy
Search the New Homes Registry
BC Housing’s registry shows whether a new or under-construction home is built by a licensed builder and has warranty insurance.
Get the policy in writing
BC Housing advises buyers to confirm in writing that warranty is included. Ask for the provider’s name, the policy and the start dates.
Work out what time remains
For a resale home, count forward from the start date. Past 24 months, the materials and labour layers have ended and only envelope and structure remain.
Ask whether it was owner-built
Owner-built homes do not need warranty insurance. An owner builder who sells within 10 years of occupancy stays liable to buyers for defects during that period.
Keep a defect file from day one
Store dated photos, the policy and every message with the builder and provider. BC Housing recommends keeping copies of all claim papers, repair letters and inspection notes.
Claim in writing, early
Send written notice to both the warranty provider and the builder as soon as possible, before coverage ends. Take reasonable steps to stop more damage.
Avoid these
Warranty mistakes new-home owners make
Letting the builder fix it quietly
BC Housing warns that builder repairs without written notice to the provider do not count as a formal claim. Send the notice even if the builder is helpful.
Assuming ten years covers everything
Only structural defects get ten years. A leaky tap or sticking cupboard falls under the shorter materials and labour periods.
Expecting the yard to be covered
Landscaping, non-residential detached structures and normal wear and tear are listed exclusions. Damage from owner neglect is excluded too.
Ignoring the common property clock
In a strata, common property has its own 15-month materials and labour period. Strata council needs to track it, not just each owner.
Example
How the coverage caps work in a strata
Illustration only, with invented numbers, to show how “the lesser of” works. Your policy sets the real limits.
| First owner’s purchase price for the unit | $650,000 |
|---|---|
| Unit limit: lesser of price or $100,000 | $100,000 applies |
| Building with 80 strata units: 80 × $100,000 | $8,000,000 |
| Common property limit: lesser of $8,000,000 or $2.5 million | $2.5 million applies |
| Building with 20 units: 20 × $100,000 | $2,000,000, which is less than $2.5 million, so $2,000,000 applies |
A cap is the most the policy will pay, not an amount you can expect to receive. Whether a defect is covered depends on the policy terms.
Questions to ask
Questions to ask before and after you buy
The builder or seller
- Who is the warranty provider, and may I see the policy?
- What is the coverage start date for my unit and for common property?
- Was this home owner-built?
- What maintenance does the policy expect me to do?
The warranty provider
- How do I give written notice of a defect?
- What documents do you need with a claim?
- How long will a decision take?
Your lawyer or notary
- Does the contract confirm the home is enrolled for warranty?
- What happens if a claim is denied?
- Who do I contact about a walkthrough deficiency list?
FAQ
Common questions
Does every defect get two full years of coverage?
No. Materials and labour coverage is 12 months for detached homes and the non-common parts of strata units, and 15 months for strata common property. Only certain items get 24 months, such as major systems, cladding, windows and doors.
Is a builder’s verbal promise to fix things enough?
No. BC Housing says you must give written notice to both the warranty provider and the builder. Repairs a builder makes without written notice to the provider do not count as a formal claim.
Does the warranty transfer if I buy a resale home?
Yes. Coverage stays with the home. A buyer gets whatever coverage time is left from the original start dates. Confirm those dates before you remove subjects.
What if my claim is denied?
The provider must give you a written decision, the reasons and information about dispute options. BC Housing has a separate warranty claim disputes page with next steps.
Are repairs made under the warranty also covered?
Yes. BC Housing says repair work is covered until the later of one year after the repair or the end of the original coverage period.
