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What is home warranty and is it worth it? What home buyers need to know - YouTube
Channel: Homebuyer's School
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- In this video we'll
look at new home warranty.
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Is it actually worth it?
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How much does it cost?
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How long does it cover for?
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And more.
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That's coming right up.
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Welcome to Homebuyer's School,
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brought to you by Brookfield Residential.
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Hi everyone.
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I'm Karl Yeh.
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Welcome to another
Homebuyer's School video.
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A channel where you get
the latest strategies,
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tactics and tips from home buying experts.
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Hit the little notification dial
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so you don't miss anything.
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So today I'm joined by Kristy Seibert,
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Area Manager of Brookfield Residential.
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And the question we're
gonna answer today is
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what is home warranty?
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And really, is it worth it?
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So, Kristy, is it worth it?
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- Absolutely.
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So, home warranty is
going to help protect you
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from any errors going on in your
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home, any construction defects.
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So, that's fantastic to have.
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It's good piece of mind.
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- So what are some things that it covers?
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- So, the home warranty covers basically
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workmanship defects, material defects,
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any structural issues,
and it also provides
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you with deposit insurance as well.
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- Okay.
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So, I guess the big question is
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how much does it cost?
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Or how is it included in
the price of the home?
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- So, there is no additional cost to
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the home buyer for the home warranty.
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It is mandatory for a new
home to have a home warranty.
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So, it is included in the purchase price.
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- And how long does it last for?
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- So, there's different
categories with the warranties.
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So, there's one year
workmanship and materials,
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two years delivery and
distribution systems, so that's
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like your mechanical systems in your home.
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Five years for your building envelope.
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So, the exterior, roof,
walls, doors, windows,
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kinda the seal of your home.
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And ten years structural.
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- And obviously when you say the envelope,
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within the year that you're covered,
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it doesn't include
anything that you build?
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- Correct.
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So it would be based off of your home.
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- That you bought?
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- Yes, yes.
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Still being accurate to the home that
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you purchased and it
was built by the builder
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with no additions added.
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- Does the home warranty impact any of the
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upgrades that you might want to include?
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Like exterior wise, interior wise?
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Or it includes everything
that you actually bought.
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- Everything that you
purchased with your home.
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So, if it's part of your home
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then it would be included, right?
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So, your flooring as long as that was
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purchased through your
builder would be covered.
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- Can I purchase this anytime?
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So, does it have to be at
the onset of buying a home?
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Could it be, let's say, I want
to wait a year and buy it?
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Or it immediately comes with the house?
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- It does come with your home.
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- Okay.
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- It's not something
that you can say no to
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and purchase later.
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The government of Alberta actually here
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has implemented that.
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So, it is something that is included with
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your home, it can't be added on later
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or not included.
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- Okay.
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And what happens if I sell my home
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and I still have whatever many years,
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whether it's the envelope
or the structural?
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Does that transfer to
the new owner as well?
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- Absolutely.
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So, for sure it will transfer over.
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So, your ten year structural coverage,
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if you sold your home five
years after you moved in,
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then the new owner would
still have five years
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of structural coverage on the home.
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- I guess the final question I have is
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when is it required?
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You actually have no choice.
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It's part of the buying process, right?
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- Yes.
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- Okay.
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- But it's absolutely
a good thing to have.
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It's not something that
you want to say not to.
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It's fantastic resource
to have, knowing that
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your builder has to comply with this.
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And that they're building you a home
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that you know for sure
is kind of well built.
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And is something of
quality that they have to
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kind of stand behind.
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- Perfect.
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Do you have anything else to add?
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- I don't think so.
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I think it's a great rule that has been
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implemented for new home builders.
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So, great piece of mind
for you as a home buyer
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to know that your home is covered.
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And that there's a third
party involved with that.
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- Perfect.
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So, question of the day for you is
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how your experience with
a new home warranty?
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Did you actually use it?
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Let us know in the comments section below.
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Anyway, thank you very
much for joining us.
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And we'll catch you next time.
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That's another edition of
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Homebuyer's School.
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Tune in next time for more
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expert tips and tricks.
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And visit homebuyersschool.ca
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to bring you
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one step closer to
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finding your dream home.
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Also, please let us know if you have any
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home buying questions
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