For homebuilders and contractors, there is still no requirement to have proof of third party home warranty insurance before receiving a city building permit to build a new home.
During Monday’s executive committee meeting, the majority of executive voted against Coun. Don Mitchell’s motion to require all building permit applicants wanting to build new dwellings to provide proof of membership in a third party new home warranty insurance program.
Mitchell’s motion would have provided a third party guarantee of the builder’s warranty and the obligation of filling the warranty if something goes wrong. It stated the warranty would be issued prior to issuing a building permit for a new home to maximize consumer protection. Currently the city does not have a policy requiring new homes to be built with warranty insurance.
“I think that there may not be 100 per cent happiness with this,” said Mitchell. “I think in terms of the standards and quality of housing in the community, this is an assurance that the level of investment of current housing need to have this protection.”
But Coun. Brian Swanson said it isn’t the role of the municipal government to ensure consumer protection on houses.
“That is the responsibility of the purchaser to determine that, not the role of the municipal government.,” said Swanson. “Let’s extend the argument to automobiles. I realize houses are major purchases. So are automobiles. Do we all of a sudden start regulating those who can sell automobiles in the interest of consumer protection? It’s not really our job.”
For more information, see an upcoming edition of the Times-Herald.
