How does the 2-5-10 warranty apply to a new laneway house?

New laneway houses in Vancouver are fully covered by BC's mandatory 2-5-10 home warranty insurance, providing the same comprehensive protection as any new detached home.

Under BC's Homeowner Protection Act, laneway houses are classified as new residential construction, which means they must be built by a Licensed Residential Builder registered with BC Housing and covered by 2-5-10 warranty insurance. This isn't optional — it's a legal requirement that protects your investment in what's typically a $150,000-$300,000+ project.

The warranty coverage breaks down into three distinct periods. The first 2 years covers labour and materials defects, including workmanship issues with flooring, paint, fixtures, and defects in major systems like electrical, plumbing, HVAC, exterior cladding, windows, and doors. The 5-year coverage specifically protects against building envelope defects, which is crucial for laneway houses since water penetration issues can be expensive to remedy. Finally, the 10-year structural coverage protects against defects in load-bearing components like foundations, framing, and roof structure.

Coverage limits for laneway houses are substantial — up to $200,000 for detached structures, which should cover most defects you might encounter. The warranty is provided by approved insurers like National Home Warranty or Travelers, and it's automatically transferred if you sell the property during the coverage period.

Before construction begins, verify that your builder is properly licensed through BC Housing's registry at bchousing.org. The builder must arrange the warranty coverage before construction starts — you can't add it retroactively. Keep all documentation including the warranty certificate, as you'll need it to file any claims.

One important consideration for Vancouver laneway houses is that they must comply with all current codes including BCBC 2024 and Energy Step Code requirements. The warranty covers defects in this code compliance work, but it doesn't cover design changes you might want later or normal wear and tear.

If issues arise during the warranty period, contact your warranty provider directly rather than going through the builder first. Document everything with photos and keep records of any communications. The warranty provides an important safety net for what represents a significant investment in your property.