Building or buying a new home is one of life’s biggest investments, and in British Columbia, every new home built by a licensed residential builder must include mandatory third-party warranty insurance. This 2-5-10 New Home Warranty Program, regulated by BC Housing under the Homeowner Protection Act, provides some of the strongest homeowner protection in Canada.
At LUX Quality Homes, every new build we deliver is fully covered under this program, giving you long-term peace of mind and protection for your investment.
What Is the 2-5-10 New Home Warranty Program in British Columbia?
The 2-5-10 warranty is a provincially mandated insurance program that protects new homeowners from construction defects. It’s available only through licensed builders and backed by approved third-party insurers.
Here’s how the coverage breaks down:
2 years — Coverage for defects in materials and labor.
5 years — Coverage for defects in the building envelope, including water penetration.
10 years — Coverage for major structural defects.
Every coverage period starts on the earlier of the occupancy date or when the home is first sold.
Year-1 (First 12 Months): Defects in Materials and Labor
For the first 12 months after you move in, your warranty covers most defects in materials and workmanship. This includes things like flooring, windows, interior finishes, trim, and fixtures.
If you notice an issue caused by a construction defect, not normal wear and tear, your builder is responsible for correcting it.
Year-2 (Months 13–24): Major Systems Coverage
From months 13 to 24, the warranty extends to your home’s major mechanical systems, including:
Plumbing
Electrical
Heating, ventilation, and air conditioning (HVAC)
These systems are protected against defects in materials, installation, or performance. Keeping up with basic maintenance helps ensure this coverage remains valid.
Year-5: Building Envelope Coverage
The building envelope, your home’s outer shell, is covered for five years. This includes walls, roofing, windows, doors, and foundation seals.
This portion of the warranty protects against defects that allow unintended water or air penetration, which can cause moisture damage or energy loss.
Year-10: Structural Defect Coverage
For up to ten years, your warranty protects your home’s structural integrity, covering defects in load-bearing walls, framing, foundation, columns, beams, and roof structure.
If a defect compromises your home’s safety or stability, repairs are covered under this long-term protection.
Who Is Eligible for Coverage?
The 2-5-10 warranty applies to nearly all new residential construction in BC:
Single-family homes and duplexes: Automatically covered when built by a licensed builder.
Condominiums and strata units: Each unit has its own warranty, and shared areas (roofs, hallways, exterior walls) are protected under the strata’s warranty.
Licensed builders: Only builders in good standing with BC Housing may offer this warranty.
Owner-built homes (built without a licensed builder) are exempt, but owner-builders assume personal liability for construction defects for 10 years.
Common Exclusions and Limitations You Need to Know
The 2-5-10 warranty is comprehensive, but not all issues qualify. Common exclusions include:
Normal wear and tear or cosmetic issues (e.g., minor cracks, fading paint).
Damage from homeowner neglect or poor maintenance.
Landscaping, fencing, and non-structural driveways or patios.
Additions or renovations made after occupancy.
Damage from natural disasters or extreme weather.
Always review your warranty certificate for exact terms and exclusions.
Costs, Transferability, and Builder Obligations
Included automatically: Coverage is part of every new home built by a licensed builder — there’s no separate purchase required.
Transferable: If you sell your home, the remaining warranty coverage automatically transfers to the new owner.
Builder responsibilities: Licensed builders must maintain valid insurance and register each home in the program before construction begins.
How To Verify Your Builder’s Warranty Registration
Before building or buying a home, verify your builder’s license and warranty status using the BC Housing Public Registry.
This ensures your builder is properly registered and authorized to provide 2-5-10 warranty coverage. A must for your protection as a homeowner.
Frequently Asked Questions
How do I find out if my new home is registered for 2-5-10 warranty coverage?
Search your builder’s name or property address in the BC Housing New Homes Registry.
Can I transfer the remaining warranty if I sell my home?
Yes. The warranty stays with the home and transfers automatically to the new owner.
What documents should I keep for a warranty claim?
Keep your warranty certificate, purchase contract, and any maintenance or repair records.
Are renovations or additions covered under the original warranty?
No. Work completed after occupancy needs separate warranty coverage or permits.
What happens if my builder goes out of business before fixing an issue?
You’re still protected, the third-party warranty provider will manage and complete valid claims.
Will the warranty still apply if I don’t maintain the home properly?
Your warranty remains active, but it won’t cover problems caused or made worse by lack of maintenance. Keeping up with regular care helps ensure your coverage stays valid for related items.
Is my condo’s common property covered under the same warranty?
Yes. In condominiums, your individual unit has its own 2-5-10 warranty, while shared areas, like roofs, exterior walls, and lobbies, are covered by a separate strata warranty policy.
We have an entire Resource Library you can get access to anytime you want as well!
Your Home, Protected by LUX
Every LUX Quality Home is backed by full 2-5-10 warranty coverage, managed promptly and professionally by our team. We believe peace of mind is part of great craftsmanship, and our commitment to quality doesn’t end at handover.
Contact us today for all your questions on Home Warranty in B.C., or to learn more, visit BC Housing Warranty On New Homes.
