Peace of mind is essential from the moment you start building your home to the day you step through the front door. Every decision, every milestone, should be met with confidence, knowing that your investment is secure and your dream is in safe hands. That’s where the Alberta New Home Warranty Program (ANHWP) steps in, not only offering the mandatory 1-2-5-10 year coverages but also providing optional Pre-Possession Insurance that goes even further to protect your investment. At Alliston at Home, we’re proud to be affiliated with ANHWP to ensure our homeowners feel secure through every step of their home-building journey.
What is Pre-Possession Insurance?
Pre-Possession Insurance offers financial protection from the moment you pay your deposit until the day you take possession of your completed home. This coverage goes beyond Alberta’s required new home warranty coverage, safeguarding you from unexpected setbacks, such as a builder default, during the construction process. For single-family and multi-family homes alike, this extra layer of protection means that your deposit and investment are secure, allowing you to focus on the excitement of building your dream home.
For Single-Family Homes: Two Levels of Protection
Pre-Possession Insurance for single-family homes is divided into two main categories, ensuring your security no matter what stage your home is at:
Deposit Protection Insurance
Before the construction even begins, your deposit is protected through Deposit Protection Insurance. This coverage secures the payments you’ve made to secure your building commitment, up to a maximum of $100,000. However, it’s always a good idea to check with your homebuilder to confirm the exact amount of coverage in your purchase agreement.
Home Completion Insurance
Once construction starts, Home Completion Insurance takes over, protecting your investment throughout the entire building process. From breaking ground to the final touches, you’re safeguarded until the day you receive the keys and take possession of your new home.
For Multi-Family Homes: Deposit Protection Insurance
When purchasing a multi-family home, Pre-Possession Insurance comes in the form of Deposit Protection Insurance. This coverage protects your deposit, up to $50,000, from the moment it’s paid until your home is completed and you take possession. Again, it’s important to confirm with your builder the specifics of your coverage.
Why is Pre-Possession Insurance Important?
While the mandatory 1-2-5-10 year warranty protects you after you’ve moved in, Pre-Possession Insurance covers the critical period before that—when you’ve made a financial commitment but haven’t yet taken possession. It shields you from the financial loss and emotional hardship that can occur if a builder defaults, regardless of the stage of construction. This extra security helps ensure that the excitement of building your new home isn’t overshadowed by worry.
At Alliston at Home, we want to provide our clients with the best possible experience when building a new home. Our affiliation with the Alberta New Home Warranty Program allows us to offer these added protections, giving you the peace of mind you deserve while your home is being built.
Have any questions about Pre-Possession Insurance or how it benefits you? Contact us today, and let us walk you through this valuable coverage!