The New Home Warranty Program of Saskatchewan, Inc. (NHWP) was formed by the building industry in May 1976, as a solution to the growing demand for new homebuyer protection. Its purpose was to provide consumer confidence in builders and to protect the investment made by owners in their new homes.
The New Home Warranty Program provides a third party guarantee of the builder’s warranty and undertakes to perform the builder’s warranty obligations should the builder default. A builder’s own warranty is only as good as the level of service the company wishes to perform or for as long as the company is in business.
All builder members of the NHWP register all their eligible units which consists of all for sale housing of the following type: single family houses, semi-detached homes, townhomes and low-rise buildings up to four stories. Ready-to-move homes (RTM’s) are also covered, excluding the foundation and any other work below the first floor joist, unless that work is included in the RTM builder’s construction agreement.
For all houses registered after January 1st, 2008, the initial deposit for the purchase of your new home is protected up to a maximum of $25,000 in the event the deposit becomes legally refundable and cannot be recovered because of bankruptcy, default, insolvency or fraud on the part of the builder. It does not cover reimbursement because of a contract dispute between the parties.
Workmanship & Materials Protection (1 Yr*)
All registered builders are required to warrant that the house is constructed in accordance with the building standards prescribed by the Province of Saskatchewan and the New Home Warranty “Construction Performance Standards” that the house is free from defects in workmanship and materials for a period of one year from the date of possession.
Water Leaks Protection (2 Yrs*)
Registered builders warrant that the building envelope (roof, exterior cladding, windows and doors) and the basement foundation walls will be free of exterior water penetration for two years from original occupancy.
Major Structural Defects Protection (5 Yrs*)
All registered builders warrant that your home will be protected against Major Structural Defects for five years from the date of possession. Major Structural Defects mean defects in workmanship or material which have or are likely to have an adverse effect on the performance of the load bearing portion of the home such as footings, piles, basement walls, beams, floor joists, teleposts, load bearing walls, and roof trusses.
Major Structural Defects (Extended Option)
An optional 5-year Extended Major Structural Defect Warranty is available for eligible single family houses enrolled after 1992. This would protect your home against major structural defects from the sixth year to the tenth year. The maximum protection would be $20,000 for all houses enrolled by the builder before January 1st, 1998, and $50,000 for all houses enrolled by the builder on or after January 1st, 1998, and $75,000 for all houses registered on or after January 1st, 2008. (Note: Extended warranty coverage is not available on condominium units).
* The total combined limit of protection for workmanship and materials, water leaks and Major Structural Defects is $20,000 for all single family houses enrolled by the builder before January 1st, 1998. All houses enrolled by the builder on or after January 1st, 1998 to December 31st, 2007, have a total combined limit of protection of $50,000 and all single family houses registered after January 1st, 2008 have a total combined limit of protection of $75,000. Condominium Projects have an overall maximum coverage of $500,000 between January 1st, 1998 to December 31st, 2007. All condominium projects enrolled on or after January 1st, 2008, have a maximum coverage of $750,000.