Home warranty insurance for applicable building envelope renovations is provided by private-sector insurance companies approved by the provincial Financial Institutions Commission (FICom) and meeting the requirements of the Homeowner Protection Act. Minimum coverage and standards for third-party warranty insurance covering applicable building envelope renovations are set by regulations. As a minimum Licensed Building Envelope Renovators must arrange for 2 years on labour and materials, and 5 years on the building envelope including water penetration.
These regulations do not apply to the following categories: buildings with only one or two self-contained dwelling units, multi-unit rental buildings, social housing, hotels and motels, dormitories, care facilities, floating homes, repairs carried out by the original builder at no cost to the owner(s) or when there is a cost-sharing agreement between the original builder and the owner(s), buildings covered with Homeowner Protection Act legislated warranty insurance, or when the dollar threshold1 and/or the percentage of cladding surface renovated threshold2 is/are not met.
1the building envelope renovation cost is greater than or equal to $10,000 or $2,000 per unit in the building
2building envelope renovations in which 60% or more of any cladding surface is renovated
Acceptance from an authorized home warranty insurance provider for building envelope renovations is required as a condition of obtaining and maintaining an HPO building envelope renovator licence.
- Authorized Home Warranty Insurance Companies
- Acceptance of a Building Envelope Renovator by a Home Warranty Insurance Provider
- Working with the Warranty Provider
- Standards of Coverage
- Other Warranty Conditions
- Dispute Resolution
Authorized Home Warranty Insurance Companies
A list of warranty insurance providers as well as insurance brokers that market home warranty insurance on their behalfs is available.
Regulation of the home warranty insurance system
Home warranty insurance providers are regulated by the provincial Financial Institutions Commission (FICom). Insurance brokers that act on behalf of warranty insurance providers are regulated by the Insurance Council of B.C. The Homeowner Protection Office monitors the performance of the home warranty insurance system in accordance with the Homeowner Protection Act and regulations, but has no authority to regulate warranty providers or insurance brokers.
Acceptance of a Building Envelope Renovator by a Home Warranty Insurance Provider
A letter of acceptance from a warranty insurance provider is a condition of licensing. The regulations set out the type of information that a home warranty insurance company can seek before approving a building envelope renovator for home warranty insurance on building envelope renovations. In general, the areas considered can include:
- do financial resources match with the business plan to undertake proposed building envelope renovations?
- is there sufficient business and technical expertise as well as experience in the company to properly manage building envelope renovations?
- does the past conduct of the applicant indicate good building and business practices, and undertakings will be carried out in accordance with all legal requirements?
- is the applicant reasonably prudent in updating their skills and continuing their education in the field of building envelope science?
- what is the applicant's after-sales service plan and capability for the building envelope renovation?
In addition to receiving acceptance for home warranty insurance, each time a Licensed Building Envelope Renovator proposes to perform a building envelope renovation subject to the regulations they must arrange for home warranty insurance. The regulations set out the type of information that a home warranty insurance company can seek before approving a proposed new building envelope renovation project for warranty insurance. This can include:
- financial resources for the proposed building envelope renovation(s)
- technical expertise and practical experience available
- sufficient and appropriate personnel to perform the building envelope renovation, and
- review of the building envelope renovation plans or building envelope consultants' reports for the proposed building envelope renovation(s).
View the Homeowner Protection Act and regulations for specific details on:
Working with the Warranty Provider
Licensed building envelope renovators will need to contact an authorized home warranty insurance provider or their authorized insurance broker under the following circumstances:
- To obtain a letter of acceptance from a home warranty insurance company for building envelope renovations. This letter is a requirement of obtaining and maintaining a building envelope renovator licence.
- To arrange for home warranty insurance for each proposed applicable building envelope renovation. The warranty insurance company completes the appropriate warranty insurance section of the HPO Building Envelope Renovation Schedule
- To arrange for inspections with the warranty insurance company throughout renovation process of the new home.
- To notify the warranty insurance company of the date in which the building envelope renovation is substantially completed, in order to commence coverage.
Standards of Coverage
The regulations set out the minimum standards of home warranty insurance coverage for applicable building envelope renovations. Coverage begins from the date on which the building envelope renovation is substantially completed. A summary of this standard is as follows:
- 2 years on labour and materials, and
- 5 years on the building envelope including water penetration.
Coverage above and beyond the minimum requirement is set by regulations and is available from one warranty provider. This coverage includes 2 years on labour and materials, and 10 years on the building envelope including water penetration.
This summary is only intended to aid in the understanding of the minimum standards of coverage and does not replace or supercede the Act and regulations. Please refer to the Homeowner Protection Act and Building Envelope Renovation Regulations regarding the:
- Circumstances in which materials and labour warranty insurance must be provided
- Water penetration warranty insurance, and
- Minimum Standards of Coverage.
Other Warranty Insurance Conditions
For more information about warranty insurance conditions for applicable building envelope renovations, view the following links to the building envelope renovation regulations:
- Warranty conditions
- Optional exclusions
- Warranty conditions respecting the costs included in calculation of renovation cost limits
- Prohibited provisions and copy of amended contract to the Homeowner Protection Office
- Deductions allowed for re-installed windows
- Consequences of not informing holder of maintenance requirements
- Schedule of expiry dates to be provided to holder
- Holder to give warranty provider notice of defects
- Mitigation of damage by holder
- Homeowner Protection Act regulations for Building Envelope Renovations
