New Home Buyers and Homeowners
New Home Buyers
Buying a new home involves making many important decisions. It is important to carefully research all aspects, seek professional advice, and gather as much information as possible about your potential new home before you sign the Agreement of Purchase and Sale. In order to obtain the benefits of the Travelers Canada 2/5/10 Year Home Warranty, you will need to confirm:
- the new home has been built by a Travelers Canada approved builder;
- the builder is licensed by the Homeowner Protection Office; and
- the new home has been registered with Travelers Canada for home warranty insurance coverage
Travelers Canada underwrites the builder's track record, technical expertise, financial capacity and after sales customer service. Only the builders who meet Travelers Canada's stringent underwriting criteria are approved.
Before taking possession of your new home, it is recommended that you make arrangements with your builder to conduct a preoccupancy walk through to identify any construction deficiencies that may be corrected prior to occupancy. At this meeting you can expect your builder to present you with a Warranty Commencement Date Certificate for signing. Upon receipt from your builder, Travelers Canada will provide you with your 2/5/10 Year Home Warranty Certificate by mail. This certificate assists us in determining the commencement date of warranty coverage for your new home. Please be sure to read this document carefully and keep it in a safe place. Should you sell the home, the warranty stays with the home and is passed onto subsequent homeowners. The 2/5/10 Year Home Warranty Certificate explains the warranty coverage in detail, defines any exclusions of coverage permitted under the Act & Regulations and outlines the process for reporting warranty defects in your new home. You should refer to the HPO Residential Construction Performance Guide to assist you in identifying and reporting defects to Travelers Canada.
Protecting your new home warranty coverage requires that you properly maintain your new home. Please refer to the Maintenance Manual to help you protect this important investment for years to come.
Homeowners / Policyholders
Once you have taken possession or moved into your new home, one of the critical steps is to ensure that your home warranty coverage has commenced. Travelers Canada requires the builder to submit a Warranty Commencement Date Certificate or acceptable proof (Statement of Adjustments or Occupancy Permit) to acknowledge who is in possession of the home and the date on which we are able to commence the home warranty coverage. In order to determine the policies and procedures for commencing the home warranty coverage on a new home, please refer to the Warranty Commencement Date Guidelines.
If you are now in possession of your Home Warranty Certificate, you must ensure that you have thoroughly read through this document and are clear on your obligations under this policy.
Making a Claim
In order to make a claim, the homeowner must provide written notice to both Travelers Canada and the builder. Travelers Canada must receive a written claim notice within the applicable time limits established by the warranty (refer to your Home Warranty Certificate for details).
Your claim notice may be sent via regular mail, courier, fax, e-mail or hand delivered to Travelers Canada's offices. Please be sure to specify, in as much detail as possible, the exact nature and location of each claim item. You should also provide any relevant supporting documents or additional information regarding your claim that you think will assist Travelers Canada in the claims process. Please note that your claim notice must be received by Travelers Canada before the expiry of the applicable warranty period. Simply posting it in the mail before the applicable warranty expires will not suffice.
When considering whether to make a claim, you should review the HPO Residential Construction Performance Guide that outlines the minimum standards for the construction or installation of particular components of a new home.
Travelers Canada recommends that you also review Section D of the Home Warranty Certificate, which lists the various exclusions to the home warranty coverage. Homeowners commonly assume that the following items are covered when, in fact, they are exclusions, which are not covered under the warranty:
- normal shrinkage of materials caused by drying after construction (such as minor drywall cracks and nail pops);
- landscaping (including plants, fencing, and detached structures);
- subsidence of the land around a home (with certain limited exceptions);
- site grading and surface drainage (except as required by the BC Building Code);
- and damage to personal property or real property not considered part of the new home supplied by the builder.
The home warranty coverage also does not cover matters considered contractual in nature between you and your builder.
If you are the owner of a strata unit, please keep in mind that your strata corporation must advance all claims related to common property (such as exterior siding or windows) or limited common property (such as an exterior deck), under the applicable common property warranty. In these cases, you should notify your strata council of your concerns (either directly or through the property manager), so a claim can be advanced on your behalf. Travelers Canada cannot accept common property claims advanced by a unit owner.
The Claims Process
Once a claim in received by Travelers Canada, Travelers is required to investigate that claim and confirm if coverage is available.
Initially, Travelers Canada will ask the builder to make a reasonable effort to address your concerns. This is done because your builder is most familiar with your home and how it was constructed, and, usually, most claims are resolved at that stage. If you are not satisfied with the builder's response to your claim, you can request a formal claims inspection by a Travelers Canada representative.
Once Travelers Canada receives an inspection request, we will contact you and the builder to arrange a convenient time for the claims inspection. After conducting the claims inspection (and any additional investigations deemed necessary), Travelers Canada will issue a Claims Adjustment Report confirming which claim items, if any, are covered under the warranty.
Travelers will then ensure action is taken on all covered claim items. Please keep in mind that once Travelers has confirmed that a claim is covered, and as long as you are provided with sufficient advance notice, you are obliged to provide the builder or a contractor appointed by Travelers access to your home at all reasonable times to undertake those repairs.
Once repairs are completed, Travelers Canada provides a warranty on those repairs until the later of: a) the first year anniversary of the date of completion of the repairs; or, b) the expiry of the applicable warranty coverage.
If you have any questions or concerns regarding the Travelers Canada claims process, please do not hesitate to contact a member of the Travelers Canada Claims Department. (Click here for the Staff Directory)
Disputes
In the event a dispute arises under the home warranty insurance between you and Travelers that cannot be resolved by informal negotiation within a reasonable period of time, you may require that the dispute be referred to mediation by delivering to Travelers, a written request to mediate. Travelers Canada is then required to attend a mediation session, where we would attempt to settle the dispute with the assistance of a trained mediator, facilitating the mediation process.
Please be aware that the mediator does not have the authority to render a decision, like a judge or arbitrator. The mediator's role is to assist the parties in their efforts to settle the matter. Refer to Section J of the 2/5/10 Year Home Warranty Certificate for more information about the mediation process.
