Prefabricated modular home warranty coverage includes:
- 2 years on labour and materials (some limits apply)
- 5 years on the building envelope, including water penetration
- 10 years on the structure of the home + 1 year mercy warranty after the 10 years has expired. Total 11 years warranty.
The two-year labour and materials coverage covers any defect in labour and materials expanded below:
- 12 months on modular detached homes workmanship.
- 15 months on the common property of modular buildings materials.
- 24 months on all new buildings for defects when related to delivery and distribution systems; defects related to the exterior cladding, caulking, windows or doors that may lead to detachment or material damage to the new home; coverage for violations of the Building Code that constitute a health or safety risk or is likely to result in damage to the new home; and defects which render the home unfit to live in.
- 60 months on water penetration and/or leakage due to defect of workmanship or corrosion.
- 120+12 months on the structure of the galvanized steel. The infrastructure will hold without defects for 11 years (132 months) from the date it was sold.
The warranty is attached to the home, not to the owner of the home, and remains in effect upon the re-sale of the home until the coverage expires.
Modular-titled homes have two policies of home warranty insurance: one on the home and the other on the common property. Sometimes when the coverage of a new modular-titled home starts, the coverage on the related common property has already started — or expired. Coverage on the common property of modular-titled buildings starts when the first unit is occupied or sold.
Owner builder exemptions
The most common exemption from the licensing and home warranty insurance requirements is a new home built under an Owner Builder Authorization.
Unless home warranty insurance is provided, owner-built homes are subject to the 10-year Statutory Protection provisions of the Act. These provisions hold the owner builder personally responsible to subsequent purchasers for any defects in labour, materials or design for 10 years after first occupancy.
If you buy such a home and find defects, you must contact us directly. Any action to remedy defects by a purchaser must be started within the 10-year period.
Home warranty insurance companies exclude from their policies.
General exclusions include:
- Non-residential detached structures (parking structures, recreational and amenity facilities in multi-unit buildings are covered)
- Commercial use areas
- Roads, curbs and lanes (driveways are covered)
- Site grading and surface drainage
- The operation of municipal services
- Septic tanks and fields
- Water quality and quantity
Defect related exclusions include:
- Normal wear and tear
- Normal shrinkage of materials from construction
- Use of new home for non-residential purposes
- Labour, materials and design supplied by the owner
- Damage caused by anyone other than the residential builder
- Damage caused by insects or rodents
- Failure of an owner to prevent or minimize damage
- Acts of nature
- Humid environments that will exhibit accelerated corrosion on structures