Why a New Home Warranty Is a Smart Investment
When you’re building or buying a brand-new home, peace of mind matters. One of the most valuable protections you can have is a New Home Warranty—an insurance-backed policy that safeguards you from unexpected repair costs due to structural defects or component failures.
This guide answers common questions about New Home Warranties and explains why working with Domishield is a wise choice for Manitoba homebuilders and their clients.
What Is a New Home Warranty?
A New Home Warranty is a policy designed to cover defects in materials, workmanship, and critical systems in a newly constructed or purchased home. Depending on the coverage plan, it may include:
- Structural components (foundation, framing, load-bearing walls)
- Roofing and water penetration issues
- HVAC (heating, ventilation, air conditioning) systems
- Plumbing and electrical systems
- Interior finishes like flooring, countertops, cabinetry, and more
- Exterior elements such as windows, doors, siding, and occasionally decks or patios
The purpose of the warranty is to ensure that the essential parts of the home perform as intended for a defined period—offering reassurance to both builders and buyers.
How Much Does a New Home Warranty Cost?
Warranty costs typically range from 0.5% to 1.25% of the home’s purchase price, with most one-year policies averaging around 0.8%. Pricing can vary based on:
- The size and type of the home
- Warranty term length (1-year, 5-year, or structural 10-year options)
- Coverage inclusions and exclusions
- The builder’s warranty provider and service level
For example, if your home was built in 2025 and sold in 2026, the warranty rate is based on the original 2025 purchase price.
At Domishield, we work directly with licensed homebuilders to offer competitive rates while ensuring full compliance with Manitoba’s New Home Warranty Act.
What’s Typically Covered?
Most New Home Warranty programs offer tiered coverage, which may include:
- 1-Year Coverage: Workmanship and materials (finishes, fixtures, systems)
- 2-Year Coverage (optional): Major systems like plumbing, HVAC, and electrical
- 5-Year Coverage: Major structural components
- Deposit Protection: If a builder defaults before possession
- Additional Protection: May include appliances, landscaping, and more (depending on policy)
Note: Always check your specific coverage agreement or ask your builder to explain the warranty in detail.
When Does Warranty Coverage Begin?
Coverage starts on the date of legal possession or occupancy—the day ownership officially transfers to the homeowner. From that point forward, eligible defects and issues within the policy scope are covered, giving homeowners the assurance they need right from move-in day.
Why Choose a New Home Warranty?
A warranty isn’t just a checkbox—it’s a safeguard. Here’s why it’s worth it:
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Protection from costly repairs due to structural defects or system failures
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Compliance with Manitoba law for newly constructed homes
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Confidence for homebuyers, which increases your builder reputation
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Transferable coverage adds resale value
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Low cost, high peace of mind—most warranties cost less than 1% of the purchase price
At Domishield, we work exclusively with Manitoba homebuilders to ensure every home is protected, every regulation is met, and every client is supported.
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