Travelers Guarantee is currently a leading provider of surety products for the residential home building and development industry in Canada. As London Guarantee Insurance Company, we were the first insurer to enter the home warranty market in British Columbia following the introduction of legislation under the Homeowner Protection Act & its Regulations (“Act”) effective July 1, 1999. Utilizing the experience and knowledge of a dedicated group of underwriters and field staff, we focus on the risk evaluation process while working to develop and maintain strong relationships with the building community.
Protecting Your Investment in a New Home
Congratulations on your decision to purchase a new house, townhome or condominium. A new home is likely the largest investment of your lifetime. Therefore, we encourage you to carefully research all aspects and to seek professional advice when required. [click here for the New Home Maintenance Manual]
In order to receive the benefits of Travelers Guarantee’s home warranty coverage, consumers must purchase a new home built and sold by one of our approved Builders. Prior to signing a Contract of Purchase and Sale, it is also prudent to contact Travelers Guarantee to verify the Builder is officially registered AND that home warranty coverage has been issued on your prospective new home.
Homeowner Protection Act — Strong protection for new home buyers
The Homeowner Protection Act & its Regulations (“Act”) became effective July 1, 1999. Prior to the issuance of a building permit, the Act requires all residential builders to be licensed by the Homeowner Protection Office (HPO) and to provide the “2/5/10″ warranty from an approved third party warranty provider. For further information please contact HPO at: (604) 646-7050 or visit their website at www.hpo.bc.ca
What is a “2/5/10″ Warranty?
The Act outlines specific details about the mandatory warranty commonly referred to as a “2/5/10″ warranty. It is the most comprehensive third party warranty in North America, and even the world. At law, builders must provide a third party warranty covering:
2 Year Materials & Labour Warranty
First 12 months — coverage for any defect in materials and labour
First 15 months — coverage for any defects in materials and labour in the common property of a multi-unit building
First 24 months — coverage for any defect in materials and labour supplied for the electrical, plumbing, heating, ventilation, and air conditioning delivery and distribution systems. In addition, coverage for any defect in materials and labour supplied for the exterior cladding, caulking, windows and doors that may lead to detachment or material damage to the new home
5 Year Building Envelope Warranty
10 Year Structural Defects Warranty
Stringent Underwriting Criteria
Travelers Guarantee thoroughly reviews all builder applicants in the areas of track record, technical expertise, financial capacity, and after sales customer service. Not every applicant qualifies. Only those builders who meet our stringent underwriting criteria are able to provide Travelers Guarantee’s home warranty coverage. The annual renewal of a builder’s registration is subject to a similar review. HPO also monitors builders throughout the province and investigates consumer complaints.
Home Warranty Documentation
Our builders are responsible for having their new home buyers sign and date a Warranty Commencement Date Certificate at the time of either the title transfer or the actual occupancy of the home (whichever is earlier). Upon receipt of this completed certificate from the builder, Travelers Guarantee issues the owner a Home Warranty Coverage Certificate. Be sure to read this document carefully and keep it in a safe place. It explains warranty coverage and the process for reporting defects in your home or common property. Upon review, if you have questions or require clarification, please contact Travelers Guarantee.