April 21, 2026
What Your Builder's Warranty Actually Covers (And What It Does Not)
By Shawn Selanders | Mortgage Broker | Since 1999
If you are buying a new build in Alberta, your home comes with a warranty. It is not optional — the New Home Buyer Protection Act requires it on every home permitted since February 2014. But most buyers have no idea what is actually covered, what is not, or how to use it when something goes wrong.
Here is the plain-language version.
The 1-2-5-10 Structure
Alberta's new home warranty follows a tiered system. Different parts of your home are protected for different lengths of time, all starting from your warranty commencement date (usually the day you take possession).
Year 1 — Materials and Labour
Baseboards, flooring, trim, cabinets, railings, staircases, driveways. The cosmetic and finish work. If something was installed wrong or a material is defective, this is your window to report it.
Year 2 — Delivery and Distribution Systems
Plumbing, electrical, heating, ventilation, and air conditioning. If a pipe leaks due to faulty installation or your HVAC was wired incorrectly, this coverage applies.
Year 5 — Building Envelope
The shell of your home — roof, exterior walls, windows, insulation. Everything that separates inside from outside. Builders can purchase an optional 2-year extension, making this 7 years total (the 1-2-7-10 structure).
Year 10 — Major Structural
Foundation, frame, and roof structure — the load-bearing bones of the home. A structural defect means a failure that materially and adversely affects your ability to live in the home.
What Is NOT Covered
This is where most homeowners get surprised:
• Normal drywall cracks — settling happens. Cracks alone are not structural defects.
• Foundation cracks from normal shrinkage — concrete cracks. It is expected. Only covered if a load-bearing component is failing.
• Landscaping, fences, and detached structures — sheds, some detached garages.
• Appliances — covered by the manufacturer, not the home warranty.
• Damage from homeowner negligence — failure to clear snow, manage drainage, or maintain the home.
• Anything you modify after possession — your renovation, your responsibility.
Pre-Possession Insurance — The Part Nobody Talks About
Before you even move in, your warranty includes pre-possession insurance. This protects your deposit and ensures your home gets completed if your builder goes bankrupt mid-construction. Given the number of builders who have gone under in Alberta over the years, this is not theoretical — it is real protection.
The Warranty Transfers When You Sell
The warranty is attached to the home, not to you. If you sell your home 3 years after possession, the new buyer gets the remaining 7 years of structural coverage, 2 years of building envelope coverage, and the shorter coverages have already expired. This is a legitimate selling point — make sure your realtor mentions it in the listing.
How to Check Any Home's Warranty Status
The Government of Alberta maintains a free public registry where you can look up warranty information on any home built after February 2014. Search by address or legal description.
Alberta Home Warranty Public Registry: homewarranty.alberta.ca
ANHWP (largest provider): anhwp.com
National Home Warranty: nationalhomewarranty.com
Why Your Mortgage Lender Cares
Lenders pay attention to warranty status, especially on new construction. If you are buying a new build, the lender wants to confirm the home is enrolled with an approved warranty provider before they fund the mortgage. For owner-built homes without warranty, some lenders require additional inspections or may decline the file entirely. When you refinance or renew a home that still has active warranty coverage, it is a positive factor — it means the structural integrity of the home is backed by insurance.
Building or Buying New?
Shawn coordinates with your builder, lawyer, and warranty provider to make sure everything lines up. One call — 20+ lenders, real answers.
Call Shawn — 403-703-6847