Tarion Warranty Corporation - Coverage Limitations
(formerly the Ontario New Home Warranty Program): 
Issues related to Extensive Repairs to a New Home

The Issues:

Unfortunately, there are cases where a new home may require extensive repairs after homeowners takes possession and move in to their new home. There are currently two areas where Tarion does not provide adequate coverage in these cases:

Maximum Pay out recently raised to $150,000 - Currently, there is a maximum pay out (legislative cap) of  $150,000 (as of Oct '04). While this is a definite improvement over the $100,000.00 that was legislated in 1976, it may still not be high enough.   Homes with serious problems often exceed this $150,000 cap, and, in these cases, new homeowners are left with no warranty protection for repairs that are in excess of $150,000.

Temporary Accommodation - In cases where extensive repairs are required, in the event that homeowners have to vacate the home in order to have the home repaired, e.g., due to health and safety reasons, Tarion does not allow claims for temporary accommodation costs.


Canadians for Properly Built Homes' Position:

Canadians for Properly Built Homes is calling for an appropriate increase in the maximum pay out to reflect the increase in new housing costs- especially in some urban communities.

Canadians for Properly Built Homes is also calling on Tarion to allow claims for temporary accommodation costs in cases where extensive repairs are required, as Tarion does currently when there are delays in closing, i.e., $100 per day in living expenses up to a maximum of $5,000 with receipts or $60 per day for living expenses without receipts.

These changes are fundamental to ensuring appropriate protection for Ontario new home purchasers.


What can concerned citizens do?

• Write or telephone your Provincial Member of Parliament and express your concerns.
   
• Write or telephone members of Tarion's Board of Directors. Here is a list of their names and contact information: www.tarion.com/HOME/About+Tarion/Board+Of+Directors/
   
• Write or telephone Minister Jim Watson, Minister of Consumer and Business Services, who is the Minister responsible for Tarion, and express your concerns. You may write him at 250 Yonge St., Toronto, ON, M5B 2N5. His telephone number is 416-326-1234 or toll-free 1-800-267-8097.
   
• Write to Premier Dalton McGuinty and express your concerns.  His address is: Dalton McGuinty, Premier, Legislative Building, Queen's Park, Toronto, ON, M7A 1A1. His email address is dalton.mcguinty@premier.gov.on.ca
   

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