If you’re considering developing your basement after purchasing your home—rather than having it completed by your builder—there are important new home warranty considerations to keep in mind. Certain basement development choices may affect or void specific portions of your warranty, while others will not impact your coverage at all.
This guide outlines key information to help you understand how finishing your basement may relate to your new home warranty and what to consider before you begin.
If you develop your basement post-purchase, what’s covered and what’s not covered by your new home warranty?
Covered:
- Defects in the original home construction
- Work performed by the builder, prior to commencement of warranty or in most cases, when the homeowner takes possession
Not Covered:
- Work completed by the homeowner or by contractors hired by the homeowner
- New Framing, electrical, plumbing, HVAC
- Alterations to the existing framing, electrical plumbing or HVAC
- New drywall, paint, finishes
- Any new mechanical upgrades or modifications
- Moisture/thermal control, or water management elements like poly air/vapour barrier, sump pump floor drains and insulation
What work can impact the existing warranty?
- Tapping into existing plumbing or modifying venting
- Extending or altering HVAC ductwork
- Modifying existing mechanical equipment
- Adding electrical circuits
- Cutting or drilling into engineered floor joists or beams
- Adding new walls that may restrict access to mechanical systems or are not constructed to allow for normal settlement or seasonal heaving.
- Changes that compromise builder installed systems or create conditions that lead to performance issues like increased moisture, humidity, air flow imbalance, condensation, cracking, etc
Homeowner Responsibilities:
- Acquire all necessary permits prior to starting work
- Use certified, qualified trades
- Retain documentation related to permits, inspections and as-built drawings
- Plan around mechanical and structural components and do not alter without professional guidance and oversight
- Ensure necessary clearances around the furnace, HRV, water heater, and shut off valves so they can be serviced
- Maintain drainage and sump access
- Ensure proper egress for bedrooms
- Document each phase of construction with photos and video and keep all receipts and inspection records
When to call your warranty provider:
- You observe issues related to your 1-2-5-10 year home warranty before starting work
- You are unsure whether your planned modification may affect warranty coverage
- You notice performance issues after completing the basement that may or may not be related to the changes made during the renovation
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