What is an Incidental Cost
Occasionally new home owners face incidental costs as a result of authorized repairs to one or more warranted items in their new home or condominium. This page provides information on your rights and coverage of these costs.
An example of an incidental cost is: a homeowner needs to hire a professional to move a piano or dishwasher so that warranted repairs to the floor can be completed. In such cases, Tarion may consider providing additional compensation for the incidental costs associated with moving and/or replacing items during the course of a warranted repair being done by or on behalf of Tarion.
Ontario's new home warranty does not require payment of incidental costs. This Allowance is a customer service gesture by Tarion. It helps contribute towards a homeowner's expenses, but is not meant to provide full compensation for any and all incidental costs incurred.
Incidental Costs covered by Tarion
Tarion will consider paying incidental costs that meet all of the following conditions:
- The homeowner has provided true copies of receipts or quotes; and
- The cost cannot be recovered from another source, such as home insurance.
- The cost is necessary and is a direct result of remedial warranty work done by or on behalf of Tarion
Maximum reimbursement amount
The maximum aggregate amount that Tarion will pay for incidental costs is $1000 per home.
How to get reimbursed
When you are likely to incur incidental costs as a result of an authorized and warranted repair, you should inform the Warranty Services Representative at Tarion handling your file.
Tarion will look into the matter and then determine whether Tarion will reimburse you for those costs, up to a maximum of $1,000. Tarion will inform you of its decision in writing.
If Tarion agrees to pay for an incidental cost, you will be offered a cash settlement. If you agree to the cash settlement, those funds will be sent to you.
For more information about reimbursement of incidental costs, contact 1-877-982-7466.
Temporary Relocation Allowance
What is a Temporary Reolcation Allowance?
The Ontario New Home Warranties Plan Act provides warranty protection to new home buyers in Ontario, covering, for example, defects in workmanship, water penetration and major structural defects as well as delayed closing and deposit protection.
We recognize that homeowners are occasionally faced with unexpected expenses because their home is uninhabitable during the repair or remediation of a warranted item. These expenses may include, for example, temporary accommodation, food, travelling and storage.
If Tarion has arranged for a repair or remediation of a warranted item and determines that the homeowner will incur expenses because the home cannot be lived in during the repair, the homeowner may be entitled to receive some additional assistance from Tarion in the form of a Temporary Relocation Allowance.
This Allowance provides up to $150 for each day that the home cannot be lived in.
Tarion does not require receipts or other proof of expenses. The start date and finish date of when the home was uninhabitable is determined by Tarion.
Ontario's new home warranty does not require payment of relocation costs. This Allowance is a customer service gesture by Tarion. It helps contribute towards a homeowner's expenses, but is not meant to provide full compensation for any and all expenses incurred.
What makes a home uninhabitable?
Tarion may determine a home is uninhabitable if an essential part of it cannot be used by the home's occupant(s) in the way one would reasonably expect. For example, a home may be uninhabitable if the warranted item or the repair or remediation of that item:
- makes the kitchen unusable;
- makes all toilets and/or all bathtubs/showers unusable;
- makes the staircase to the upper floor unusable or unsafe;
- adversely affects the structural integrity of the home; or
- involves remediation of mould or another harmful substance.
How do you apply for the allowance?
If you have made a warranty claim and you believe the required repair or remediation will render your home uninhabitable, you can request a Temporary Relocation Allowance. Tarion will then assess your request and notify you in writing as to whether or not you are eligible for this Allowance.
If you are eligible, Tarion will also inform you in writing of the exact time period for which the Temporary Relocation Allowance will be paid.
For more information about the Temporary Relocation Allowance, contact 1-877-982-7466.