Buying a presale or a brand new home comes with a big comfort blanket: the 2/5/10 warranty. But what does it really cover, for how long, and what does the builder get to walk away from? Here is the plain version of the BC new home warranty, before you sign.
What Does the 2/5/10 Warranty Cover? (Short Answer)
Every new home built for sale in BC by a licensed builder must come with third party home warranty insurance. This BC new home warranty is usually called the 2/5/10 warranty. It works in three layers:
| Coverage | How long | What it covers |
|---|---|---|
| Materials and labour | 1 to 2 years | Defects in materials and workmanship, plus major systems |
| Building envelope | 5 years | Water getting in through the roof, walls, windows or doors |
| Structure | 10 years | Defects in load bearing parts of the home |
It is backed by an insurance company, not just the builder, so if the builder goes out of business, you are still covered. It also stays with the home, so the next owner gets whatever time is left.
What it does not do is cover everything that goes wrong in a new home. Normal wear, landscaping, damage you cause, and some common property items are excluded, and there are caps on how much can be paid out.
Year 1 and Year 2: Materials, Labour and Building Systems
The first layer is the one you will most likely use. It covers defects in materials and labour, but not all for the same length of time:
- 12 months: defects in materials and labour for detached homes and for the inside of your own strata unit (think a cracked tile, a sticking door, a cabinet that was installed badly).
- 15 months: defects in the common property of a strata building.
- 24 months: defects in the major systems of every new home, which means the electrical, plumbing, heating, ventilation and air conditioning, plus exterior cladding, windows and doors.
It also covers building code violations that create a real health or safety risk during this period.
A practical tip: do a careful walk through a month or two before your first year is up and write down every issue, even small ones. Once the 12 month window closes, the small stuff is on you.
Years 1 to 5: The Building Envelope
The building envelope is everything that keeps weather out: the roof, exterior walls, windows, doors and the way they are sealed. The 5 year coverage protects you against defects that let water in and cause damage.
This matters a lot on the North Shore, where rain is not exactly rare. The leaky condo crisis of the 1990s is the whole reason this warranty exists. If you notice water stains, swelling baseboards, mould smells or damp window frames, report it fast. Our guide to leaky condos and building envelopes on the North Shore explains what to watch for.
Years 1 to 10: Structural Defects
The last layer covers structural defects for 10 years. That means problems with the load bearing parts of the home, such as the foundation, beams, columns and load bearing walls, that affect its ability to stand up safely.
Hairline cracks in drywall or a small crack in a concrete floor are not usually structural. Serious foundation movement, sagging floors caused by a failed beam, or major framing defects are.
When BC New Home Warranty Coverage Starts and How It Transfers
The clock starts on a specific date, and it is not always the day you move in:
| Type of home | Coverage starts on |
|---|---|
| Strata unit (presale condo or townhome) | First occupancy or title transfer, whichever comes first |
| Common property in a strata | First occupancy of the first unit, or first title transfer |
| Speculative detached home | First occupancy or title transfer, whichever comes first |
| Custom detached home | Occupancy or first occupancy permit, whichever comes first |
This is important for strata common property. If you buy one of the last units in a building that has been occupied for a year, the common property coverage may already be partly used up.
Transfers. The warranty stays with the home. If you buy a five year old condo, you inherit the remaining envelope and structural coverage, which is one of the real advantages covered in our guide to new vs old condos in North Vancouver. There is nothing to sign, but ask the seller for the warranty certificate and provider details.
Coverage Limits: The Most the Warranty Will Pay
There are maximum payouts, and on a high priced North Shore home they can be well below what a serious repair costs:
| Home type | Maximum coverage |
|---|---|
| Detached home | The lesser of the purchase price or $200,000 |
| Strata unit | The lesser of the purchase price or $100,000 |
| Common property | The lesser of $100,000 per unit or $2.5 million per building |
What Is Excluded: Wear, Landscaping, Owner Damage and Common Property Limits
Common items the warranty does not cover:
- Normal wear and tear, shrinking, settling and minor cracks
- Landscaping, fences, driveways, roads, curbs and site grading
- Detached garages, sheds and other non residential structures in many cases
- Damage caused by you, your tenants or someone else, including skipping maintenance
- Owner supplied materials or work you (or your contractor) did after completion
- Damage from natural events such as floods, earthquakes or fire (that is what your home insurance is for)
- Appliances, which are covered by the manufacturer’s warranty instead
The maintenance piece catches people out. Your builder must give you a maintenance manual. If you ignore it (say you never clean the gutters and water backs up), the provider can deny the claim.
How to File a Claim and the Deadlines That Void It
The most common reason claims fail is timing. Here is how to do it right:
- Document the problem with photos, videos and dates.
- Tell the warranty provider in writing as soon as you notice the defect, and always within the coverage period. Telling only your builder, the strata manager or the site super is not enough.
- Keep a copy of everything you send.
- Let the provider inspect. They will usually ask the builder to fix it first.
- Get a written decision. If you disagree, there is a formal review and dispute process.
A few timing traps:
- Waiting until the last week of the 12 month period is risky. File as issues appear.
- If you wait and the damage gets worse, the provider may limit what they pay for.
- For strata common property, the strata corporation has to file the claim. Push your council to do its year end review on time, and check the strata depreciation report for items that should have been claimed.
Owner Built Homes and Why Some New Homes Have No Warranty
Not every newish home has 2/5/10 coverage. The big exception is owner built homes. A person can get an owner builder authorization from BC Housing to build a home for their own use without warranty insurance.
If they sell it within 10 years, they must give buyers a disclosure notice, and they remain personally responsible for defects for 10 years. But there is no insurance company behind that promise. If the owner builder has no money or has moved away, you may have no practical way to recover anything.
Other homes that may have no warranty:
- Homes built before the rules came into force in 1999
- Some purpose built rental buildings that later convert to strata
- Homes where the builder was not properly licensed (a serious red flag)
Before you buy anything built in the last 10 years, check BC Housing’s New Homes Registry and its guide to home warranty insurance on new homes to confirm who built it and whether warranty coverage is on file.
Frequently Asked Questions
Does the 2/5/10 warranty cost me anything?
No. The builder pays for it and includes it in the price.
Does the warranty cover my appliances?
No. Appliances are covered by their manufacturers’ warranties.
Can the coverage periods be extended?
The minimum periods are set by law. Some builders or providers offer extras, so ask, but most buyers get the standard 2/5/10.
What if my builder goes bankrupt?
The warranty provider still handles your claim. That is the main reason the warranty is insurance based.
Does the warranty cover deposits on a presale?
No. Presale deposits are protected by the developer’s deposit rules and trust requirements, not the home warranty.
Can I claim for a problem the previous owner caused?
Not if it was caused by the owner or poor maintenance. Only construction defects are covered.
Who files the claim for the lobby or the roof in a condo?
The strata corporation files claims for common property.
How do I find my warranty provider?
Check the warranty certificate from your builder or look up the address on BC Housing’s New Homes Registry.
Does a renovated home come with a warranty?
No. The 2/5/10 warranty applies to new construction, not renovations.
Buying a Presale on the North Shore? Let’s Check the Warranty Before You Sign
A presale contract is long, and the warranty section is easy to skim. But the details matter: when coverage starts, what is carved out, how much is covered for common property, and whether the builder has a solid track record with past buildings.
Navid Hakimi helps North Shore buyers compare presale projects, review disclosure statements and understand the warranty before any deposit goes in. Learn more about our presale real estate services in North Vancouver, or ask Navid to review a presale project before your deposit goes in.
Current as of September 2026. This is general information, not legal advice. Coverage details come from your warranty certificate, so always read it and get legal advice before signing a presale contract.
