The New Home Warranty Act is coming into effect January 1, 2018 and a local builder says no new home with a mortgage will be able to be built without the builder having home warranty coverage.

Dave Siemens from Kleefeld Construction says he has had home warranty for about ten years and the involved process to acquire it shows he has a reputable business and is a reliable builder who provides a good product.

"If something goes wrong or if somehow I'm not able to take care of the deficiencies myself, that's within the first year, then they have a way of making sure that the customer gets looked after. If I default in the first year. Then after that, let's say there's a foundation breaking or something like that; third year, fifth year, tenth year, they'll cover it."

Under The New Home Warranty Act until the end of the first year defects in materials, labour and design are covered. Until the end of the second year, defects violations of the Manitoba Building Code and defects to electrical, plumbing, heating, ventilation, and air conditioning, exterior cladding, windows, doors, and building envelope, including defects resulting in water penetration are covered. And until the end of seven years all major structural components are covered.

Siemens says in the past ten years there have been many builders starting up their own companies. He notes, while many are good at what they do, there are some who don't have enough experience or shouldn't be working in home construction. He adds, having home warranty backs up the builder as a reputable business. 

"In some ways, it's a formality for the banks. Just to make sure the builder is reputable. It's probably the main, most imporatnt feature of home warranty."

The New Home Warranty Act states it will be possible for an individual to build their own home and not have to arrange for home warranty coverage. However, it adds owner-builders will have to arrange for home warranty on their homes should they wish to sell it.