What is the Alberta New Home Warranty Program?

Alberta's housing market is booming, with the province setting historic records for housing starts in 2024. As more developers are rushing in to help fill the housing shortage with new builds in both Calgary and around Alberta. With new builds popping up, here's an interesting question - Are you aware of what the 'Alberta new home warranty program is'?

What is it?

The ANHWP is mandatory in Alberta for new homes permitted after February 1, 2014. It ensures builders meet minimum standards and provides financial protection to homeowners.

What Does it Cover?

The warranty has mandatory minimum coverage periods:

• 1-Year Coverage (Labor and Materials): Covers defects in workmanship and materials, including flooring, cabinets, trim, and fixtures.

• 2-Year Coverage (Delivery and Distribution Systems): Covers defects in electrical, plumbing, heating, ventilation, and air conditioning systems.

• 5-Year Coverage (Building Envelope): Covers defects in the exterior of the home, including the roof and walls.

• 10-Year Coverage (Major Structural Components): Covers defects in the building's foundation and roof.

Some builders offer extended building envelope protection (up to 7 years) and coverage for living expenses if you need to relocate during repairs.

Condo Buyers: Special Considerations

When purchasing a condo, be sure to:

• Check insurance start dates for your unit and the building's common property

• Review the Building Assessment Report and/or Converted Property Study from the condo corporation before finalizing the sale

The Bottom Line

The Alberta New Home Warranty Program offers several key benefits:

1. Financial Protection: Shields buyers from unexpected repair costs in the early years of homeownership.

2. Quality Assurance: Encourages high construction standards by holding builders accountable.

3. Transferable Coverage: Remains valid even if the property is sold before the coverage expires.