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LIMITS OF LIABILITY - STANDARD WARRANTY COVERAGE
Pursuant to the cover set out in the Insuring Agreement the Insurer shall not be responsible for more
than:
1. $200,000.00 (or the purchase price paid by the purchaser/homeowner, whichever is less) for a
dwelling unit in fee simple ownership;
2. $100,000.00 (or the purchase price paid by the purchaser/homeowner, whichever is less) for a
dwelling unit in a strata titled or multi-unit project;
In calculating the cost of claims for standard limits under warranty coverage, the Insurer will include:
a. the cost of repairs;
b. the cost of investigation, engineering and design required for repairs; and
c. the cost of supervision of repairs, including professional review (but excluding legal costs);
d. the living out accommodation expenses.
3. $100.00 (or the paid amount, whichever is less) per day for reasonable living out accommodation
expenses actually incurred by the homeowner in the event that repairs are required under warranty
and the damage to the building or extent of the repairs renders the dwelling unit uninhabitable.
Coverage under this subsection will continue until the dwelling unit is ready for occupancy, subject to
the homeowner receiving 24 hours advance notice.
INSURING AGREEMENT
The Insurer will pay on behalf of the purchaser/homeowner during the periods of insurance noted (subject
to the terms, conditions, limits, definitions and exclusions contained herein) for:
1. Materials and Labour Warranty
The coverage for the two (2) year material and labour warranty is as follows:
a. in the first twelve (12) months from the commencement date:
i. coverage for any defect in materials and labour; and
ii. subject to definition, coverage for a violation of building code.
b. In the first twenty-four (24) months from the commencement date:
i. coverage for any defect in materials and labour supplied for the electrical, plumbing,
heating, ventilation and air conditioning delivery and distribution systems;
ii. 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 dwelling unit;
iii. coverage for any defect in materials and labour which renders the new home unfit to live in;
iv. subject to definition, coverage for violation of the building code.
c. Non-compliance with the building code is considered a defect covered by this policy if the non-
compliance:
i. constitutes an unreasonable health or safety risk; or
ii. has resulted in, or is likely to result in, material damage to the dwelling unit.
2. Building Envelope Warranty
The coverage for the ten (10) year building envelope warranty is as follows:
a. In the first ten (10) years, from the commencement date, any defect that permits unintended
water penetration such that:
i. it causes material damage to the dwelling unit; or
ii. it is likely to cause material damage to the dwelling unit.
3. Major Structural Warranty
The coverage for the ten (10) year structural defects warranty is as follows:
a. any defect in materials and labour that results in the failure of a load bearing part of the
dwelling unit; and
b. any defect that causes structural damage that materially and adversely affects the use of the
dwelling unit for residential occupancy.
