Avoid Home Building Disasters with a Safety Net, the Home Builders Warranty Insurance

Avoid Home Building Disasters with a Safety Net, the Home Builders Warranty Insurance! 

Having built my own home years ago, I know the highs and lows of home construction firsthand. I understand the excitement and worries that come with it. 

From carefully selecting an ideal neighborhood to choosing a builder with your vision, every move has to be calculated. 

While mistakes may feel inevitable, particularly for first-time builders, I’ve learned that many issues can be addressed, especially with the security provided by Home Builders Warranty Insurance.

Know how this helps Ontario’s new homeowners below, along with important insights to consider. 

What is Home Builders Warranty Insurance?

What is Home Builders Warranty Insurance

Home Builders Warranty Insurance is a home warranty program in Ontario that protects new home buyers and owners from unexpected financial losses and construction defects.

In addition to financial protection, it ensures that new homes meet certain quality standards and provides recourse for homeowners in case of disputes with builders. 

This is one of the things to keep in mind when building a house with a builder in Ottawa, so make sure to thoroughly research and verify the builder’s compliance with Tarion’s eligibility criteria before making any commitments.

How do I know if the builder is in compliance with Tarion’s criteria? 

How do I know if the builder is in compliance with Tarion’s criteria

You can determine if a builder is compliant with Tarion’s criteria by checking if they are registered on Tarion’s official website. From there, you can search for builders and review their compliance status directly on the site.

Where can I get Home Builders Warranty Insurance in Ottawa?

Where can I get Home Builders Warranty Insurance in Ottawa

You can get Home Builders Warranty Insurance by registering your account on Tarion and enrolling your home there. This is only available to residents of Ontario.

What does the Home Builders Warranty Insurance cover?

What does the Home Builders Warranty Insurance cover

Home Builders Warranty Insurance covers protection from financial loss, including compensation for delays in closing or occupancy and coverage for certain defects in work and materials.

What is the duration of coverage of the Home Builders Warranty Insurance?

What is the duration of coverage of the Home Builders Warranty Insurance

Home Builders Warranty Insurance starts when you move into your space and lasts until the warranty period ends, even if you sell the home before the warranty expires.

Requirements For Home Builders Warranty Insurance

Requirements For Home Builders Warranty Insurance

To obtain Home Builders Warranty Insurance, you typically need to enroll your new home with Tarion. 

This involves submitting required documentation and fees, such as the New Home Enrollment Form and applicable warranty enrollment fee. 

Additionally, builders must demonstrate compliance with Tarion’s eligibility criteria, which may include proof of technical competence, financial stability, and adherence to regulatory standards. 

This serves as a crucial factor in knowing if the home builder is good and reliable. 

Once enrolled, homeowners receive warranty coverage, protecting them against defects and providing recourse in case of disputes. 

It’s important to consult Tarion’s guidelines and work closely with your builder to ensure compliance with all requirements.

Is Home Builders Warranty Insurance mandatory?

Is Home Builders Warranty Insurance mandatory

Home Builders Warranty Insurance is mandatory for new homes and must be enrolled through Tarion. 

It sets standards for construction quality and ensures accountability from builders, benefiting both homeowners and the construction industry.

In the event of unforeseen issues with your new home, you can have financial protection, providing peace of mind. 

By enrolling in this mandatory program, homeowners can confidently start their homeownership journey, knowing that their investment is protected and their rights are upheld.

The Cost of Home Builders Warranty Insurance

The Cost of Home Builders Warranty Insurance

The money you have to spend for a Home Builders Warranty Insurance depends on the estimated sales price of your home. 

For instance, for a home with a sales price ranging from $750,000.01 to $800,000.00, you’d be required to submit $1,904.05 to Tarion.

This is based on the Enrollment Fees Calculator provided by Tarion. 

While this additional expense may seem daunting, it’s important to recognize the value it offers in terms of protecting your investment.

Considering the peace of mind it provides, many homeowners find it to be a worthwhile investment in the long run.

Having warranty insurance in place can enhance your confidence in the quality of your new home and provide reassurance throughout the homeownership journey. 

Steps on How to Claim Home Builders Warranty Insurance

Step 1. Inform your builder

Before even making a claim, the first step is to tell your home builder about the issues. 

It’s recommended to have the issues in writing so that both parties have a clear record of the concerns raised and the attempts made to resolve them.

If the issues aren’t solved by your builder, proceed to the next step. 

Step 2. Make the claim 

If your builder wasn’t able to fix the issue or disagrees it’s covered, that’s where you should file a claim to Tarion.

They’ll assess it and check if the insurance covers the issue. 

Remember that you can only report your claims if your warranty is still eligible. 

Step 3. Repair Time Frame 

When you file a warranty claim with Tarion, your builder has 120 days to fix or address covered items. That said, keep in mind that some repairs have different time frames depending on the damage. 

The 120-day timeframe doesn’t cover major structural problems. 

Step 4. Conciliation

In the event that your builder hasn’t solved the issue, you can ask Tarion for a conciliation inspection any time after informing them. 

Expect a Tarion representative to visit and inspect your home. 

Following the inspection, you’ll receive a report detailing what’s covered and what needs fixing by your builder. 

If Tarion determines that the issue isn’t covered, your builder isn’t obligated to address it, leaving you responsible for resolving the matter independently.

If your issues are covered, proceed to the next part. 

Step 5. Resolution 

Your builder has 30 days to fix the issue if the conciliation process states that it’s covered. 

After those days, a representative from Tarion will check if you’re satisfied with your repairs. 

If any items are still unresolved, Tarion will either inspect your claim or assess it without a visit. This helps ensure your warranty claim is resolved properly by your builder.

If you’ve reached this part but still need help, it might be time for alternate solutions. 

Consider reaching out to a separate organization established by the Ontario government specifically to help resolve disputes involving Tarion.