Types of coverage after you've taken possession
After taking possession of your new home you are entitled to coverage of various items. This coverage takes effect after you’ve taken possession, what items are covered are based on various timeframes and situations. See below for an overview of each.
Freehold, Contract, Condo Units & Condo Conversions
1, 2 & 7 Year Coverage
By law, all new homes built in Ontario are provided with a warranty by the builder. Tarion’s role is to ensure that buyers of newly built homes in Ontario receive the coverage they are entitled to under their builder’s warranty
Incidental Costs
Customer Service Gestures
Occasionally new home owners face incidental costs as a result of authorized repairs to one or more warranted items in their new home or condominium. This page provides information on your rights and coverage of these costs.
What is Not Covered by the Warranty
The Act sets out a list of exclusions from warranty coverage for Freehold, Contract & Condo Units. It is important for homeowners to note what is not covered by the warranty, to learn more visit our what is not covered page.
Coverage Limits
As of February 1, 2021 Tarion has increased several warranty coverage limits to better protect homeowners.
Below is a summary of the coverage limits for projects where the first Agreement of Purchase & Sale (APS) is signed either on/after February 1, 2021 or before that date.
Agreement of Purchase & Sale signed before February 1, 2021
- The maximum statutory warranty coverage available for freehold homes and condominium units is $300,000.
- The maximum coverage for condominium common elements is $50,000 times the number of units, up to a maximum of $2.5 million.
- The maximum combined coverage for a condominium project (units and common elements) is $50 million.
- There is a maximum of $15,000 for warranted damage caused by environmentally harmful substances or hazards and a maximum of $25,000 for coverage of septic systems.
Agreement of Purchase & Sale signed on or after February 1, 2021
- The maximum statutory warranty coverage available for freehold homes and condominium units is $300,000.
- The maximum coverage for condominium common elements is $100,000 times the number of units, up to a maximum of $3.5 million.
- The maximum combined coverage for a condominium project (units and common elements) is $50 million.
- There is a maximum of $50,000 for warranted damage caused by environmentally harmful substances or hazards.