What Is Not Covered by Tarion’s New Home Warranty

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Items & Deficiencies Not Covered by the Warranty

Homeowners should be aware of what the statutory warranty does not cover.

The Act outlines specific exclusions from warranty coverage for Freehold, Contract & Condo Units. Review the details below to understand which items and deficiencies are excluded for each type of home.

The Home Construction Regulatory Authority (HCRA) determines the types of homes eligible for the new home warranty. However, Tarion can provide guidance on a specific home’s warranty eligibility. For inquiries, please email ismyhomecovered@tarion.com.

Conditions Not Covered for Freehold, Contract Homes, and Condominium Units:

The new home warranty for Freehold homes, contract homes, and condominium units does not cover the following:

  • Defects in materials, design, and work supplied by the homeowner.
  • Secondary damage resulting from defects under warranty, such as property damage and personal injury.
  • Normal wear and tear.
  • Normal shrinkage of materials due to drying after construction.
  • Damage caused by dampness or condensation if the homeowner fails to maintain adequate ventilation or properly operate moisture-producing devices like humidifiers.
  • Damage caused by the homeowner or their visitors.
  • Alterations, deletions, or additions made by the homeowner.
  • Settling of land around the building or along utility lines, except for settling beneath the building’s footings.
  • Contractual warranties that are outside the scope of the Ontario New Home Warranties Plan Act.
  • Damage caused by insects or rodents, unless the construction does not meet the Ontario Building Code specifications.
  • Damage caused by municipal services or other utilities.
  • Surface defects in work and materials that were specifically identified and accepted in writing by the homeowner on the date of possession.

Acts of God

The warranties within the Ontario New Home Warranties Plan Act do not apply to “damage resulting from an act of God.”

An act of God refers to an unexpected and unavoidable natural event that causes damage beyond the builder’s control. Examples include tornadoes, earthquakes, and extreme winds.

This exclusion does not encompass typical weather events for our climate, such as ice, snow, high winds, and heavy rains. It applies only to extraordinary natural occurrences or conditions that could not have been reasonably predicted or prevented. For instance, high wind is not considered an act of God unless it possesses such exceptional force that no builder in Ontario could reasonably be expected to anticipate or protect against it. Homes designed and built to Ontario’s standards (e.g., the Ontario Building Code) should withstand normal environmental conditions in Ontario.

If a homeowner reports an issue following a storm or other natural event, the builder should not automatically assume the act of God exclusion applies. The condition requires inspection and assessment to determine if there is a defect in the builder’s work or materials, a violation of the Ontario Building Code, or another defect covered by the warranties.

If a builder defect exists, the responsibility falls on the builder to demonstrate that the act of God exclusion is applicable. For example, if roof shingles were improperly installed by the builder and were blown off on a windy day, the builder would need to replace them unless they can prove the shingles were performing correctly and were only dislodged due to extraordinary winds.

Tarion will review situations on a case-by-case basis, as reported by homeowners or builders, to determine if the act of God exclusion is applicable.

Additional Items Not Covered for Condo Conversions

The one-year warranty on workmanship and materials does not cover pre-existing elements.

This exclusion exists because pre-existing elements are often older and cannot be certified in the same manner as new construction. However, all other one-year warranty protections, including compliance with Ontario Building Code regulations, apply to both the pre-existing elements and the new components of the project.

Support from Tarion

If you are likely to incur incidental costs due to an authorized repair covered by the warranty, you should inform the Warranty Services Representative at Tarion handling your case.

Tarion will investigate the matter and determine whether reimbursement for these costs will be provided, up to a maximum of $1,000. Tarion will communicate their decision to you in writing.

If Tarion agrees to cover an incidental cost, a cash settlement will be offered. Upon your agreement, these funds will be sent to you.

For further information regarding the reimbursement of incidental costs, please contact 1-877-982-7466.

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