The 2-5-10 New Home Warranty, Explained
Every new multiplex sold in BC comes with mandatory home warranty insurance, whether or not the listing mentions it. It's called the 2-5-10 warranty: two years on labour and materials, five years on the building envelope, ten years on the structure. Here's what that actually covers, and what it doesn't.
Key Topics
It's Insurance, Not a Builder Promise
The warranty is underwritten by a licensed home warranty insurance provider, regulated by BC's Financial Services Authority (BCFSA). If your builder goes out of business, the insurer still has to pay valid claims — that's the entire point of making it mandatory.
2 Years: Labour and Materials
The first two years after you move in cover defects in labour and materials, with some limits. This is the broadest but shortest window — things like faulty fixtures, workmanship issues, and material defects.
5 Years: Building Envelope
For five years, the building envelope is covered — the walls, windows, roof, and anything that keeps water out. Water penetration is the single most common claim category in BC, where the building code exists largely because of it.
10 Years: Structure
The full structure of the building — the frame, foundation, and load-bearing elements — is covered for ten years from the date of occupancy. This is the longest window and covers the most serious category of defect.
What's Covered, and For How Long
BC's mandatory home warranty covers labour and materials for 2 years, the building envelope (including water penetration) for 5 years, and the structure for 10 years from the date of occupancy. It applies to new-build duplexes, triplexes, and fourplexes the same way it applies to detached homes.
Defects in workmanship and materials used to build your unit. Some limits apply by category — check your specific policy for exact terms.
The parts of the building that keep water out: walls, windows, roofing, flashing. Water penetration is BC's most common and most expensive claim category.
Load-bearing elements — the frame, foundation, and structural systems that keep the building standing. The longest window, for the most serious defects.
Source: BC Financial Services Authority (BCFSA), Homeowner Protection Act. All coverage periods run from the date of occupancy, not the date of purchase.
Why This Protects You Even If the Builder Disappears
The most important thing to understand about the 2-5-10 warranty is who is actually on the hook. It is not a promise from your builder that they will come back and fix things. It is an insurance policy, sold by a licensed home warranty insurance provider and regulated by BCFSA. Your builder pays a premium to enroll the home in the program before construction even starts, the same way a driver pays a premium for car insurance.
That distinction matters because small and mid-size builders sometimes wind down between projects, restructure, or in rarer cases go bankrupt. If your builder is one of them and a covered defect shows up in year 4 or year 8, you are not out of luck. You file the claim with the insurer, not the builder, and the insurer is contractually obligated to assess and pay valid claims regardless of what happened to the company that built your home.
This is one of the clearest, most concrete advantages a brand-new multiplex has over a resale property with no warranty left, or over informal construction that was never enrolled in a warranty program at all. Before removing subjects on any pre-sale or new-build contract, ask for the name of the warranty insurance provider and the Certificate of Completion and Home Warranty Insurance. If a builder cannot produce this, that is a serious red flag, not a paperwork delay.
Your Unit vs. Common Property
Most new multiplexes in Metro Vancouver are strata-titled, which means warranty coverage applies at two levels.
Your Individual Unit
Defects inside your own unit — flooring, interior walls, fixtures, in-unit plumbing and electrical — are your responsibility to report, and you deal with the warranty insurer directly as the unit owner. Coverage is capped at the lesser of your purchase price or $100,000.
Shared Common Property
Shared building elements — the roof, foundation, exterior walls, and structural systems — are also covered, but the strata corporation typically manages that claim on behalf of all owners rather than one owner acting alone. Coverage is capped at the lesser of $100,000 per unit or $2.5 million per building.
Source: BC Housing, Home Warranty Insurance for New Homes. A detached home is capped at the lesser of purchase price or $200,000. Always confirm your building's specific limits in the Certificate of Completion and Home Warranty Insurance before closing.
The bottom line
Every new multiplex sold in BC comes with mandatory 2-5-10 home warranty insurance, whether the listing mentions it or not. That means two years on labour and materials, five years on the building envelope, and ten years on the structure, all backed by a licensed insurer rather than a builder's word.
For a buyer weighing a brand-new multiplex against a resale property, this warranty is a real, quantifiable advantage that doesn't show up in the listing price. Ready to see what's currently on the market? See the pre-sale checklist for what to verify before you commit, or browse active multiplex listings.
Data: BC Financial Services Authority (BCFSA), Homeowner Protection Act. This guide explains general coverage categories and is not a substitute for reading your building's actual Certificate of Completion and Home Warranty Insurance.
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Key Takeaways
- BC requires mandatory 2-5-10 home warranty insurance on every new home sold, including new-build multiplex units.
- The warranty is backed by a licensed insurer, not by the builder, so it survives even if the builder goes out of business.
- Coverage: 2 years on labour and materials, 5 years on the building envelope (including water penetration), 10 years on the structure.
- The warranty is attached to the home itself, not the original owner, so it transfers automatically if you buy a resale multiplex unit still inside its coverage window.
- Coverage limits are the lesser of purchase price or $200,000 for detached homes, the lesser of purchase price or $100,000 for a strata unit, and the lesser of $100,000 per unit or $2.5 million per building for strata common property.
- Filing a claim starts with written notice to the warranty provider, not the builder directly, though most buyers contact the builder first as a courtesy.
Frequently Asked Questions
What is the 2-5-10 home warranty in BC?
It's the mandatory home warranty insurance required on every new home sold in BC, including new-build multiplex units. It covers labour and materials for 2 years, the building envelope for 5 years, and the structure for 10 years, all backed by a licensed insurer rather than the builder.
The Homeowner Protection Act requires every licensed residential builder in BC to enroll new homes in a home warranty insurance program before construction starts. BCFSA (BC Financial Services Authority) regulates both the builders and the insurance providers. Because the coverage comes from an insurance policy rather than a promise from the builder, it keeps working even if the builder closes down, gets sued into bankruptcy, or simply stops answering the phone. For a buyer comparing a new-build multiplex unit to an older resale property, this warranty is one of the clearest financial protections that comes standard with new construction.
Does the new home warranty apply to duplexes and multiplexes?
Yes. The 2-5-10 warranty requirement applies to new residential construction sold by a licensed builder in BC, which includes duplexes, triplexes, fourplexes, and other multiplex configurations, not just detached single-family homes.
The Homeowner Protection Act does not carve out an exception for multi-unit ground-oriented housing. Whether you're buying one unit in a strata-titled fourplex or an entire freehold duplex, the same mandatory coverage categories apply: 2 years labour and materials, 5 years building envelope, 10 years structure. For strata-titled multiplexes, both your individual unit and the building's common property (shared walls, roof, foundation) fall under warranty coverage. Per BC Housing, individual strata units are covered up to the lesser of purchase price or $100,000, and common property is covered up to the lesser of $100,000 per unit or $2.5 million per building. The strata corporation, not you individually, typically manages a common-property claim. Always confirm the property is enrolled in a warranty program and ask for the Certificate of Completion and Home Warranty Insurance before your subject-removal deadline on a pre-sale contract.
What isn't covered by the new home warranty?
Cosmetic issues, normal wear and tear, damage from lack of maintenance, and anything the homeowner causes are generally excluded. Appliances usually fall under their own manufacturer warranty, not the home warranty.
Home warranty insurance is designed to cover construction defects, not the ordinary aging of a building or a homeowner's own actions. A hairline crack in drywall from normal settling is typically excluded; a structural crack that compromises the building's integrity is not. Failing to run bathroom fans and causing mould from your own neglect is excluded; water penetration through a failed building envelope detail is covered. Every policy has its own exact exclusion list, so read the Certificate of Completion and Home Warranty Insurance for your specific unit rather than assuming based on a general guide.
Does the home warranty still apply if I buy a resale multiplex unit?
Yes, if the home is still inside its coverage window. The warranty is attached to the home itself, not the original buyer, so it transfers automatically to each new owner until the applicable coverage period expires.
This matters when comparing a resale multiplex unit to a brand-new one. A 3-year-old multiplex unit still has roughly 2 more years of building envelope coverage and 7 more years of structural coverage remaining, at no extra cost to you as the buyer. Ask the seller's realtor for the original Certificate of Completion and Home Warranty Insurance, which shows the occupancy date the coverage clock started from, and confirm with the named insurer that the policy is still active before you remove subjects.
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