Is the 2-5-10 warranty mandatory?

Yes. A person must not build a new home in BC unless it is registered for coverage by home warranty insurance from a warranty provider. A person also cannot sell a new home within 10 years of its occupancy permit unless the insurance is in place. Owner-built homes and a short list of other homes are exempt, covered below. Source: Homeowner Protection Act, 1998, c. 31, s. 22 (bclaws.gov.bc.ca).

Who provides the warranty, and who regulates it?

An insurer. The Act defines a warranty provider as a person authorized under the Financial Institutions Act to carry on insurance business. The builder is not the provider. The Act is administered by a registrar at BC Housing, whose Licensing and Consumer Services branch licenses residential builders and keeps a public registry. Source: Homeowner Protection Act, ss. 1, 7 and 29.5 (bclaws.gov.bc.ca).

I’m buying a home that’s a few years old. Does the warranty still apply?

Yes, if it is still inside a coverage period. Unused benefits transfer automatically to each later owner, and nobody has to notify the insurer. The clock does not restart on resale: a four-year-old home has about one year of envelope coverage and six of structural coverage left. Ask for the policy and the expiry schedule the provider must give the first owner. Homes under a building permit applied for on or before June 30, 1999 are outside the Act. Source: Homeowner Protection Act Regulation, Schedule 2 s. 2, s. 15 and s. 21 (bclaws.gov.bc.ca).

What is the "building envelope," and why does it get its own five years?

The building envelope is the assemblies, components and materials that separate and protect the inside of the home from exterior weather: walls, roof, windows, doors and what sits behind them. The Act names it as its own tier with a five-year minimum, and says it includes defects that let water in. Source: Homeowner Protection Act, s. 22(2)(b); Regulation, s. 1 and Schedule 3, s. 2 (bclaws.gov.bc.ca).

I’m looking at a home the owner built themselves. Is it covered?

Usually without insurance. An authorized owner builder is not required to carry home warranty insurance. Instead the Act deems the owner builder to have agreed that the home is free of defects for at least 2 years (materials and labour), 5 years (envelope) and 10 years (structure) from the occupancy permit or first occupancy. A claim goes to the owner builder, and must be started within 10 years of first occupancy. An owner builder, or a later buyer, who sells during the period the insurance would have run must give a disclosure notice saying whether the home is covered. Source: Homeowner Protection Act, ss. 20(3), 21 and 23 (bclaws.gov.bc.ca).

How is the 2-5-10 warranty different from the builder’s own promises?

The 2-5-10 coverage is the legal minimum, issued by an insurer. A policy may give more, and a builder may add its own commitments, such as a deficiency list or a first-year fix. Those are only as good as the sales contract, so get them in writing. The Regulation sets minimum coverage, so read your policy for anything extra. Source: Homeowner Protection Act Regulation, Schedule 3 (bclaws.gov.bc.ca).

What does the warranty NOT cover?

A provider may exclude items such as normal wear and tear, shrinkage as materials dry, materials or labour the owner supplied, alterations after occupancy, landscaping, sheds and detached outbuildings, roads and curbs, septic systems, and damage the owner failed to limit. An owner must give written notice of a defect to the provider and the builder within a reasonable time after finding it and before the coverage ends. Source: Homeowner Protection Act Regulation, ss. 10, 11 and 16 (bclaws.gov.bc.ca).

The 2-5-10 new-home warranty

A newly built BC home comes with insurance the builder registers for you: 2 years on materials and labour, 5 on the building envelope, 10 on structural defects. The clock starts when the first owner takes possession, so on a resale you buy the time still left.

What is covered, and for how long

Three windows, one insurer: the warranty provider answers a valid claim, not the builder. On an owner-built home with no insurance, the owner builder answers it.

The 2, 5 and 10 year warranty at a glance
Years of cover	What
2	Materials and labour, and the main systems
5	The building envelope, including water getting in
10	Structural defects

Every window, month by month(4)

The 2-5-10 coverage periods and what each covers
Period	What it covers
12 months	Any defect in materials and labour in the home. For strata common property this window is 15 months.
24 months	Defects in the electrical, plumbing, heating, ventilation and air conditioning systems. Defects in exterior cladding, caulking, windows and doors that may lead to detachment or material damage. Any defect that makes the home unfit to live in.
5 years	Defects in the building envelope, including defects that let water in and cause or are likely to cause material damage.
10 years	Structural defects: a defect in materials and labour that makes a load-bearing part fail, or damage that materially affects use of the home.

A violation of the Building Code counts as a defect when it is an unreasonable health or safety risk or has caused, or is likely to cause, material damage. These are the minimums the Regulation sets. A policy can give more.

How much it covers

Where a provider sets a limit on claims, the Regulation sets the lowest that limit can be. It depends on the type of home:

Detached home: the lesser of the first owner’s purchase price or $200,000.
Strata unit: the lesser of the first owner’s purchase price or $100,000.
Strata common property: the least of the total purchase price, $100,000 times the number of units, and $2.5M per building.

BC Housing describes these as the most you can claim. The policy for your home is the controlling document.

When coverage starts

All three clocks start on the same day, and the start day depends on how the home was built.

Custom detached home (built on land the owner owns): the earliest of occupancy, an occupancy permit, or the home being ready for occupancy.
Speculative detached home (built on land the owner does not yet own): the earlier of occupancy or transfer of title.
Strata unit: the earlier of occupancy or transfer of title.
Strata common property: the same day as the first unit in each building.

Selling does not restart the clock or end the coverage. Buy a three-year-old home and about two years of envelope coverage and seven of structural coverage are left.

Homes outside the requirement

Owner-built homes. An authorized owner builder need not carry the insurance. The Act deems the owner builder to have agreed to the 2, 5 and 10 year protections instead, and a buyer must be given a disclosure notice.
Hotels and motels, dormitories, care facilities and floating homes, unless strata titled.
Manufactured homes, which the Act leaves out of “new home”.
Rental buildings, only where a covenant registered on title bars sale of any unit for 10 years from first occupancy.
Homes on First Nations reserve land. BC Housing says these are exempt and that a builder may offer cover voluntarily.

Ask your lawyer or notary to confirm whether a home was builder-built or owner-built before you remove subjects.

Five checks before the offer

Confirm the builder is licensed. Check the builder on BC Housing’s public registry of licensed residential builders. A home built by a licensed builder must be registered for the insurance.
Get the warranty policy. Ask the seller or builder for the home warranty insurance policy. It names the warranty provider and the coverage start date.
Find the coverage start date. For a home built on the owner’s own land, coverage starts at the earliest of occupancy, an occupancy permit, or the home being ready for occupancy. For a strata unit it starts at occupancy or title transfer, whichever is earlier. This date starts all three clocks.
Work out where the clocks stand. Count from the start date: 2 years on materials and labour, 5 on the building envelope, 10 on structural defects. On a resale, only the time still left is yours.
Read the limits and exclusions. Note the claim limit, the permitted exclusions and the notice rule. Written notice of a defect must reach the provider before the coverage ends.

If you are buying new

A new home carries 5% GST, with a rebate for some buyers. See the GST rebate guide.
The BC Newly Built Home exemption is a separate break on the Property Transfer Tax, not on GST. See the Property Transfer Tax guide.
Warranty covers defects. Unpaid trades are a different risk: see builders liens, and the due-diligence checklist for the rest.

Questions buyers ask

Is the 2-5-10 warranty mandatory?
Yes. A person must not build a new home in BC unless it is registered for coverage by home warranty insurance from a warranty provider. A person also cannot sell a new home within 10 years of its occupancy permit unless the insurance is in place. Owner-built homes and a short list of other homes are exempt, covered below. Source: Homeowner Protection Act, 1998, c. 31, s. 22 (bclaws.gov.bc.ca).
Who provides the warranty, and who regulates it?
An insurer. The Act defines a warranty provider as a person authorized under the Financial Institutions Act to carry on insurance business. The builder is not the provider. The Act is administered by a registrar at BC Housing, whose Licensing and Consumer Services branch licenses residential builders and keeps a public registry. Source: Homeowner Protection Act, ss. 1, 7 and 29.5 (bclaws.gov.bc.ca).
I’m buying a home that’s a few years old. Does the warranty still apply?
Yes, if it is still inside a coverage period. Unused benefits transfer automatically to each later owner, and nobody has to notify the insurer. The clock does not restart on resale: a four-year-old home has about one year of envelope coverage and six of structural coverage left. Ask for the policy and the expiry schedule the provider must give the first owner. Homes under a building permit applied for on or before June 30, 1999 are outside the Act. Source: Homeowner Protection Act Regulation, Schedule 2 s. 2, s. 15 and s. 21 (bclaws.gov.bc.ca).
What is the "building envelope," and why does it get its own five years?
The building envelope is the assemblies, components and materials that separate and protect the inside of the home from exterior weather: walls, roof, windows, doors and what sits behind them. The Act names it as its own tier with a five-year minimum, and says it includes defects that let water in. Source: Homeowner Protection Act, s. 22(2)(b); Regulation, s. 1 and Schedule 3, s. 2 (bclaws.gov.bc.ca).
I’m looking at a home the owner built themselves. Is it covered?
Usually without insurance. An authorized owner builder is not required to carry home warranty insurance. Instead the Act deems the owner builder to have agreed that the home is free of defects for at least 2 years (materials and labour), 5 years (envelope) and 10 years (structure) from the occupancy permit or first occupancy. A claim goes to the owner builder, and must be started within 10 years of first occupancy. An owner builder, or a later buyer, who sells during the period the insurance would have run must give a disclosure notice saying whether the home is covered. Source: Homeowner Protection Act, ss. 20(3), 21 and 23 (bclaws.gov.bc.ca).
How is the 2-5-10 warranty different from the builder’s own promises?
The 2-5-10 coverage is the legal minimum, issued by an insurer. A policy may give more, and a builder may add its own commitments, such as a deficiency list or a first-year fix. Those are only as good as the sales contract, so get them in writing. The Regulation sets minimum coverage, so read your policy for anything extra. Source: Homeowner Protection Act Regulation, Schedule 3 (bclaws.gov.bc.ca).
What does the warranty NOT cover?
A provider may exclude items such as normal wear and tear, shrinkage as materials dry, materials or labour the owner supplied, alterations after occupancy, landscaping, sheds and detached outbuildings, roads and curbs, septic systems, and damage the owner failed to limit. An owner must give written notice of a defect to the provider and the builder within a reasonable time after finding it and before the coverage ends. Source: Homeowner Protection Act Regulation, ss. 10, 11 and 16 (bclaws.gov.bc.ca).

Sources(3)

Also drawn from: BC Laws, BC Housing.

Homeowner Protection Act, chapter 31 of 1998BC Laws, read November 5, 2026
Homeowner Protection Act Regulation, B.C. Reg. 29/99BC Laws, read November 5, 2026
Home warranty insurance for new homesBC Housing, read November 5, 2026

Homeowner Protection Act, 1998, chapter 31BC Government, retrieved Nov 5, 2026
Homeowner Protection Act Regulation 29/99BC Government, retrieved Nov 5, 2026
Home Warranty InsuranceBC Housing, retrieved Nov 5, 2026
bc.home_warranty.2_5_10, v1, in the Codex

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Last reviewed November 5, 2026 by Bronson Job PREC, REALTOR®. Licence CC BY 4.0. How we verify.

I’m Bronson Job, a REALTOR® (PREC) with Momentum Realty Inc., so I earn a commission when I help someone buy or sell. This is general information, not advice on your situation, and I take no payment from any third party named here. How I verify.