Buying a property is one of the biggest purchases you’ll ever make. With all the moving parts in construction, even a brand-new home can come with unexpected issues. Tarion Warranty is your safety net to fall back on if you run into issues when your new construction home in Kingston.
Let’s breakdown Tarion Warranty and understand how it protects you before and after moving into your new home.
What is Tarion Warranty?
The Tarion Warranty Program is a mandatory protection plan for new homes in Ontario. Established by the Ontario government in 1976, Tarion regulates builders and ensures they meet construction standards. More importantly, it protects you financially when builders fail to deliver as promised. Every builder of a new home in Ontario must enroll their projects in this warranty program. It costs between $661 to $6,780 depending on the size and cost of your home is typically included in the purchase price.
What Does the Tarion Warranty Cover?
Here’s a closer look at what it covers at different stages of construction:
During Construction
- Deposit Protection: Your deposit is protected up to $100,000 for freehold homes and $20,000 for condominium units.
- Delays or Occupancy Protections: Tarion helps manage delays in construction or occupancy. Builders are expected to clear timelines and compensation if they fail to meet the agreed dates. You may receive compensation for alternative living arrangements or lost income due to delays.
- Construction Standards: Tarion enforces Ontario’s building code requirements. Builders must adhere to structural, electrical, and safety standards and ensure the unit is free from defects.
After Move-In
Once the keys are in your hand, Tarion Warranty protects you from issues that you may encounter only after living there for a while. They include:
- One-Year Warranty: Covers workmanship and material defects, for example, poorly installed cabinets, doors that don’t close properly, improperly installed railings, or uneven flooring.
- Two-Year Warranty: Includes coverage for defects in your home’s plumbing, electrical, and HVAC systems. It also addresses leaks caused by foundation issues, exterior cladding, roofing defects, or poorly sealed windows and doors.
- Seven-Year Warranty: Covers the most financially significant parts of a house. It protects against failures that impact your home’s safety, stability, or use. Examples include foundation cracks, load-bearing wall defects, or improperly installed roof trusses.
How to Use Your Tarion Warranty?
In 2023, Tarion paid out $47.5 million in claims, most of which was towards 1st year claims. Making a claim is a straightforward process, here are the steps:
Document the Issues
Take photos and videos and keep detailed notes of any problems you notice. This only makes your case stronger.
Review Your Deadlines
Tarion works on specific reporting periods:
- 30-Day Form: Report issues within the first 30 days after taking possession.
- One-Year Form: Covers problems you notice during your first year of living in the home.
- Two-Year Form: For systems and structural issues that arise in the first two years.
- Major Structural Defects Form: Submit within seven years for major structural concerns.
Contact Your Builder First
Tarion requires you to contact your builder before filing a claim. Most builders will address the issues to avoid further involvement from Tarion. Some builders are more proactive than others, so choose wisely when investing your hard-earned money.
File a Claim with Tarion
If your builder doesn’t resolve the issue, you can submit a claim directly to Tarion. They will investigate and, if needed, step in to ensure repairs are made or compensation is provided.
A new home is a big investment, and knowing you’re protected lets you focus on making it your own.
