MARCH 7TH 2023 TARION NEW HOME WARRANTY WILL HAVE NEW EASIER TO NAVIGATE WEBSITE!
Friday Feb 24th, 2023
Following public feedback received earlier this year, Tarion is increasing the new home warranty coverage provided by builders in Ontario. The changes involve boosting the warranty compensation limit to $400,000 for new freehold homes and creating a new Temporary Relocation Warranty.
Warranty Compensation Limit
The warranty compensation limit increase from $300,000 (current) to $400,000, applies to freehold homes in which the homeowner owns the land and the home, such as detached, semi-detached homes and some townhouses. This increase will provide new freehold homeowners in Ontario with the highest overall coverage available in Canada when compared to coverage amounts set out by other provincial warranty programs.
The warranty compensation limit for condominium units will not increase, as those homes already benefit from additional coverage under the builder’s Common Elements warranty.
The Common Elements warranty coverage for condominiums was increased to $3.5 million in 2021.
Temporary Relocation Warranty
The new Temporary Relocation Warranty of $150/day - up to a maximum of $15,000 - will help cover costs homeowner may have to pay associated with temporary accommodations. This coverage for both condominium and freehold homeowners applies if a warranted repair renders the home uninhabitable and they are required to relocate while repairs or remediation is completed.
Tarion is in the process of creating the guidelines that will govern when and how this new warranty is applied, including clear definitions of when a home would be deemed uninhabitable.
The warranty coverage enhancements will come into effect on July 1, 2023, and will benefit homeowners who enter into a purchase agreement on, or after, that date.