Home warranty coverage doubled
Total warranty coverage for new homes in Ontario increased from $150,000 to $300,000 for buyers who take possession on or after July 1.
Tarion Warranty Corporation announced that there will be no additional cost for consumers or builders associated with the coverage increase as the fee will remain the same to enrol a new home in the mandatory warranty program.
“This is a significant benefit to new home buyers and builders in Ontario that reflects the robust housing market and the increasing price of new homes,” said Greg Gee, president and CEO of Tarion.
“While most homeowners will never need this amount of coverage for warranty-related issues in their new homes, the increase to $300,000 gives purchasers the added confidence of knowing that they are covered even if a major repair is required.”
The average price for a new single-family home in Ontario during 2005 was $306,000, with warranty enrolment fees ranging from $325, for homes priced at $100,000 or less, to $750 for those worth $500,000 or more.
“This demonstrates Tarion’s continued commitment to improving protection” for buyers of new homes, said Ontario Minister of Government Services Gerry Phillips.
The increased coverage will apply to all purchasers with a date of possession on or after July 1, regardless of when they entered into their agreement of purchase and sale.
“For the past 30 years, new homeowners in Ontario have been protected by a statutory warranty that has evolved to become one of the most comprehensive of its kind in North America,” said Gee.
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