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Building Envelope Renovation Warranty Insurance

You must still be a licensed residential builder and have the warranty insurance in place before you can start the renovation.

Overview

If you’re a repair contractor who wants to perform applicable building envelope renovations in B.C., you must have two key things in place before starting construction:

  • Third-party warranty insurance
  • A residential builder licence

As a licensed residential builder, you must be classified in this instance as a building envelope renovator.

Even in geographic areas that do not require building permits for applicable building envelope renovations, you must still be a licensed residential builder and have the warranty insurance in place before you can start the renovation.

These conditions apply each time you plan to carry out an applicable building envelope renovation.

Finding a warranty provider

Only home warranty insurance providers approved by the BC Financial Services Authority (BCFSA) and that meet the requirements of the Homeowner Protection Act can provide building envelope renovation warranty insurance.

Contact one of the providers (or insurance brokers that act on their behalf) on our list to apply for building envelope renovation warranty insurance.

Home warranty insurance providers are regulated by the BC Financial Services Authority (BCFSA). The Insurance Council of B.C. regulates insurance brokers that act on behalf of warranty insurance providers. We monitor the performance of the home warranty insurance system in accordance with the Act and its regulations, but have no authority to regulate warranty insurance providers or insurance brokers.

Contacting a warranty provider

As a licensed building envelope renovator, you must contact an authorized home warranty insurance provider in order to:

  • Obtain warranty acceptance for building envelope renovations. This is a requirement of obtaining and maintaining a builder envelope renovator licence.
  • Arrange for warranty insurance for each proposed applicable building envelope renovation. The warranty insurance provider must complete the appropriate section of the Building Envelope Renovation Schedule.
  • Arrange for inspections with the warranty provider throughout the renovation process.
  • Notify the warranty insurance provider of the date when the building envelope renovation is substantially completed in order to start coverage.

Key information regarding the warranty insurance provider

The Building Envelope Renovation Regulation sets out the type of information that the warranty insurance provider can request before accepting a building envelope renovator. These questions might include:

  • Do your financial resources match with the business plan to undertake proposed building envelope renovations?
  • Does your company have sufficient business and technical expertise as well as practical experience to properly manage building envelope renovations?
  • Does your past conduct indicate good building and business practices, and that undertakings will be carried out in accordance with all legal requirements?
  • Are you reasonably prudent in updating your skills and continuing your education in the field of building envelope science?
  • What is your after-sales service plan and capability for the building envelope renovation?

Before agreeing to provide warranty insurance on a proposed building envelope renovation project, a warranty provider may also ask for information such as:

  • Do you have the financial resources for the proposed building envelope renovation?
  • Is there sufficient technical expertise and practical experience available?
  • Do you have sufficient and appropriate staff to perform the building envelope renovation?
  • Can you supply the building envelope renovation plans or the building envelope consultant’s reports for the proposed building envelope renovation for review?

Consult the Act and Regulation for more details around warranty provider acceptance.

Home warranty insurance coverage

The Building Envelope Renovation Regulation explains the minimum standards of home warranty insurance coverage for applicable building envelope renovations. Coverage begins from the date on which the building envelope renovation is substantially complete. The cost of the building envelope renovation warranty insurance is set by the warranty providers.

Minimum coverage for building envelope renovations includes:

  • 2 years on labour and material
  • 5 years on the building envelope, including water penetration

This summary is for guidance only and does not replace or supersede the Act and its regulations. Please consult those for more information on:

Further warranty insurance conditions around building envelope regulations include:

Exemptions

The regulations for building envelope renovations do not apply to these categories:

  • Buildings with only one or two self-contained dwelling units
  • Buildings covered with Homeowner Protection Act legislated warranty insurance
  • Buildings when the dollar threshold (greater than or equal to $10,000 or $2,000 per unit in the building) and/or when the percentage of cladding surface renovated threshold (60 per cent or more of any cladding surface) is not met
  • Care facilities
  • Dormitories
  • Floating homes
  • Hotels and motels
  • Multi-unit rental buildings
  • Multi-unit buildings in which first occupancy occurred 25 or more years before the building envelope renovation started or — if applicable — the issuance of a building permit for the renovation, whichever is earlier
  • Repairs carried out by the original builder at no cost to the owner(s) or when there is a cost-sharing agreement between the original builder and the owner(s)
  • Social housing