Gaps in New Home Warranty Coverage Across Canada

Author

Eleanor Friedland, Michael Lio, Dolly Gerrior

Organization

Consumers Council of Canada (CCC)

Published

2007

Summary

Warranty programs in Canada are intended to protect the substantial capital. An investment made by consumers in regards to the purchase of a new home and to guard against builders who are unable or unwilling to remedy problems in the construction of a new home. This paper explores the various warranty programs in Canada and in selected countries around the world. Mandatory, non-profit and for-profit programs were examined and compared with the objective of identifying gaps in new home warranty coverage across Canada. Gaps in new home warranty coverage across Canada were identified through a series of key informant interviews with individuals from all existing Canadian non-profit warranty programs, two for-profit programs and various government agencies. A full literature search was conducted which included print publications and internet sources. Papers presented at various conferences and forums were reviewed and analyzed along with studies completed by KPMG Consulting, and TARION Corporation. Articles respecting new home purchasers' difficulties were reviewed and follow-up conducted with their authors where necessary. Finally, quantitative research was completed using a Canada-wide survey instrument developed by the Consumers Council of Canada and conducted by Maritz Research via Omnitel - a national telephone omnibus to assess new home buyers' perceptions of warranty coverage. In total 6041 adults were interviewed over three waves resulting in 565 completed surveys.

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OCA Funded Research
This research received funding support through the Office of Consumer Affairs' Contributions Program.

Contact information

Source: Consumer Policy Research Database