During a storm, a large tree topples down onto your brand-new house, severely damaging the roof. Do you have a new house warranty or homeowners insurance that would cover this? But what if you discover a leak in your skylight when you get up in the morning? Do I contact my home warranty provider or submit a claim to my homeowner’s insurance?
Your peace of mind in your new house or apartment can be greatly bolstered by purchasing both a new home warranty and homeowners insurance. They all cover different things, have different payment structures, and are handled differently. The following are some of the primary distinctions between the new Ontario home warranty plan and homeowner’s insurance.
WHAT EXACTLY IS ONTARIO'S NEW HOME WARRANTY GOOD FOR?
A new home warranty in Ontario is effective on the day of occupancy of a single-family dwelling or a condominium. Protection against faults in the home, including those caused by noncompliance with the Ontario Building Code and prohibited material replacements, begins on the date of closing.
Your home’s plumbing, electrical, and HVAC systems, as well as any damage caused by water seeping in through the foundation, are all covered by your two-year warranty. Major structural faults that endanger the home’s integrity or significantly reduce its use are covered by your warranty for seven years.
WHAT DOES STANDARD HOMEOWNER'S INSURANCE COVER?
A builder in Ontario must give and pay for a new house warranty, but they can charge you for it if they want to. A seven-year policy with a single payment costs between $375 and $1900, based on the value of the home.
WHEN A PROBLEM ARISES, WHO IS RESPONSIBLE FOR THE COST OF WARRANTY REPAIRS?
Private homeowner’s insurance must be procured by the homeowner. In Ontario, a homeowner should expect to pay about $1,250 (two hands hovering over a laptop) annually for home insurance. It’s worth noting that many Canadian mortgage lenders insist on seeing proof of home insurance before approving a loan.
HOW DO NEW HOUSE WARRANTY CLAIMS GET PAID?
If a problem arises with a warranty-eligible component, you should contact your builder. If, however, your builder does not fix the problem within the specified time frame for repairs, you have the option of hiring outside help.
TO WHOM AND HOW ARE HOMEOWNERS' INSURANCE CLAIMS PAID?
Call your insurance agent or company as soon as possible if you have an emergency that is covered by your homeowner’s policy. They will likely dispatch an adjuster to assess the loss or damage before moving forward with your claim. You will be reimbursed for the cost of the repairs or replacement once the claim has been processed.
So, the tree fell and damaged your roof, huh? Your homeowner’s policy should cover that. A dripping skylight? The two-year water-penetration warranty should cover that. The Ontario New Home Warranty and your home insurance policy are designed to work together to safeguard your investment.
