The following comments are based on my observations of how the warranty plan works in Alberta.
Home warranty is not compulsory yet but they are lobbying the government to make it so.
Your only protection if you buy new from a builder that is using a warranty plan is to have the house inspected before you agree to the COP (certificate of Possession). The warranty will insure that the listed defects will be fixed if reported before the COP but will not deal with defects that existed and not reported before the COP.
It seems that the warranty will only deal with defects that developed after the COP was issued.
Once again it is buyer beware.
I’ve done two home inspections before the COP.
The builder was ordered to buy the home back at the current assessed value and the other buyer got a $30,000.00 hold back until the builder fixed the defects.
All other New homes that I inspected after the COP did not get satisfaction from the builder because the Warranty did not cover the defects that existed before the COP.
Some of these defects were Building code violations.