insurance and new home

toxic111 · #1 05-27-2009, 04:06 AM

is that home owner's insurance, or New Home Waranty?

G1GY · #2 05-27-2009, 05:15 AM

Not so hard to fathom. You buy the home and they pay the insurance premiums on a homeowners policy for a year. It's only a $400-$800 perk depending on all the variables. I'd bet that the insurance provider even gives the builder a break in hopes that you'll stay with them and maybe even move some of your other buisness over to them. Even if you buy a mansion........ the amount they have to pay for that one year of coverage is directly proportionate to what you spend on a home. Heck, if I was selling my home and you were willing to pay the asking price..... I'll give you a year of free insurance!

Realy not all that amazing.

G1GY · #3 05-27-2009, 05:20 AM

Quote:

Originally Posted by toxic111

is that home owner's insurance, or New Home Waranty?

New home warranty isn't an insurance program at all, but CMHC is.(It's a policy we buy for the bank.

)

mark · #4 05-27-2009, 05:30 AM

Quote:

Originally Posted by G1GY

New home warranty isn't an insurance program at all, but CMHC is.(It's a policy we buy for the bank.

)

Never could figure CMHC, you pay for insurance on a loan and then the bank gets the asset anyways if you default.

Now the New Home Warranty Programs, there's another big joke/rip-off.

Scythanith · #5 05-27-2009, 06:55 AM

I've used the NHWP to my advantage while dealing with issues in our new home.

CMHC is a kick to the nuts...

Colby82 · #6 05-27-2009, 02:37 PM

you dont have to pay CMHC if you put down 25% or more on the total price of the home. if you are only paying 5% you get the CHMC charge.

Scythanith · #7 05-28-2009, 02:09 AM

Quote:

Originally Posted by Colby82

you dont have to pay CMHC if you put down 25% or more on the total price of the home. if you are only paying 5% you get the CHMC charge.

There is a huge range between 5% and 25%!

This is from CMHC's website

"Typically lenders will require mortgage loan insurance if a borrower has a down payment of less than 20% of the purchase price of the home."

We paid 10% on our home and still had to pay CMHC. 20% down on our home would have been 65K, I didn't have that lol!

toxic111 · #8 05-27-2009, 02:39 PM

The New Home Warranty Program is one of the biggest scams out there....

I have been in the design industry for 12 1/2 years, and in construction industry for over 20... I have to yet see the Home Warranty program actually pay out properly...

For the extra 10-15000 for a new home you pay... its not worth it.. since they will only come in if the contractor does not come to fix problems... PIA

G1GY · #9 05-27-2009, 04:41 PM

Quote:

Originally Posted by toxic111

The New Home Warranty Program is one of the biggest scams out there....

I have been in the design industry for 12 1/2 years, and in construction industry for over 20... I have to yet see the Home Warranty program actually pay out properly...

For the extra 10-15000 for a new home you pay... its not worth it.. since they will only come in if the contractor does not come to fix problems... PIA

I would love to know how this works. I've been out of the construction industry for a number of years and back when I was still in it it was the builder that was covered by NHW. At that time a builder that wanted to take part in the program would have to put out a surety bond. The bond was in place to be used if the builder didn't take care of any issues that arose.

Could be thinking of the theiving the theiving CMHC when you say 10-15000? If so, that amount is on every home that's mortaged when the buyer starts with of a down payment of less than 25%.

toxic111 · #10 05-27-2009, 05:50 PM

It is the builder that is covered by NHW... however the builder has to put a bond of 10-15000 (or more depending on the house), of course this cost is in the price of the house.

Now most good builders will come and fix problems right away & you don't have to go through NHW...

If you do have issues and the builder disappears, and you have to go through NHW, good luck... it seems to be pulling teeth to get anything done at all... plan on a long wait..

I know someone going through the hoops right now.. we will see how that goes..

You should see the costs a builder has to go through for NHW if they are doing small multifamily... a real PIA