Coverage, claims, exclusions, and homeowner tips — Palazzo Construction
Palazzo Construction Ltd. • Vancouver & Lower Mainland • September 2025
In British Columbia, most new homes must carry a third‑party warranty commonly called **2‑5‑10**. It typically includes **2 years** on materials & labour (with sub‑limits for distribution systems), **5 years** on the **building envelope** against water penetration, and **10 years** on **structural defects**. Coverage begins at first occupancy or completion, subject to your policy wording.
At a Glance
- Provided by a **licensed home warranty insurer**; builders must be licensed with **BC Housing**.
- Starts at first occupancy/completion; transferable to subsequent owners during the term.
- Owner **maintenance** and prompt notice to builder/insurer are required to preserve coverage.
- Condo/strata: the corporation typically handles common‑property envelope/structural claims; owners handle in‑suite items.
Coverage Explained (Visuals)
2‑5‑10 coverage timeline from first occupancy/completion (illustrative).
Coverage matrix — summary of what each period typically addresses (confirm policy wording).
Focus differences: condo/strata vs detached/townhome (illustrative).
How to Make a Claim (High‑Level)
Typical claim path under 2‑5‑10 — document, notify builder, notify insurer, assess, repair, close‑out.
Owner Responsibilities & Maintenance (Examples)
- Carry out regular maintenance (caulking, cleaning gutters/drains, replacing filters, re‑sealing as needed).
- Address minor leaks or deficiencies promptly to mitigate damage; keep dated photos and logs.
- Do not alter building envelope or structure without permits and qualified professionals.
- Follow manufacturer maintenance for windows, roofs, cladding, HVAC, and appliances.
FAQs
**Is every new home in BC covered?** Most new homes built by licensed builders must be covered; exceptions exist (e.g., owner‑builder with specific conditions).
**When does coverage start?** Typically at the earlier of first occupancy or substantial completion; check your certificate.
**Does 2‑5‑10 transfer to the next owner?** Yes—coverage follows the home within the warranty term.
**What is considered a structural defect?** A defect that materially and adversely affects load‑bearing function (policy definitions apply).
References (APA 7th)
BC Housing. (2024). Licensing & Consumer Services — Home warranty (2‑5‑10) overview. https://www.bchousing.org/
Homeowner Protection Act (British Columbia). (current). Home warranty insurance requirements. https://www.bclaws.gov.bc.ca/
Insurance Council of BC. (2023). Home warranty insurance guidance for consumers. https://www.insurancecouncilofbc.com/
Province of British Columbia. (2024). BC Building Code 2024 — relevant definitions and envelope provisions. https://www2.gov.bc.ca/
Copyright & Editorial Integrity
Original writing and visuals created for Palazzo Construction. Facts are paraphrased from official sources cited above; no verbatim copying. This is general information, not legal advice. © Palazzo Construction Ltd. All rights reserved.
Palazzo Construction Ltd. • Vancouver & Lower Mainland • September 2025