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2. Commencement Date

a. Fee Simple Homes:

The commencement date for this insurance coverage of a dwelling unit held in fee simple is as

follows:

i. for a dwelling unit constructed by a vendor/developer/general contractor on land owned

by owner, the commencement date is the earliest of:

1. the date of actual occupancy of the dwelling unit;

2. the granting of an occupancy permit or similar right to occupy by the authority having

jurisdiction; and

3. the date that the dwelling unit is completed and ready for occupancy.

ii. for a dwelling unit constructed by a vendor/developer/general contractor on land not

owned by the homeowner, the commencement date is the earlier of:

1. the actual date of occupancy of the dwelling unit;

2. the transfer of the legal title of the dwelling unit to the owner.

For the purposes of subsection (a)(i), in a jurisdiction where occupancy permits are not issued, a

dwelling unit is deemed to have reached the stage of occupancy when it:

i. is completed as that terms is defined by the builders’ lien act; and

ii. is capable of being occupied.

b. Strata Dwelling Units:

The commencement date for this insurance coverage on a dwelling unit comprising the strata lot is

the earlier of:

i. the actual occupancy of the dwelling unit; and

ii. the transfer of legal title to the strata lot.

c. Special Cases:

i. If an unsold dwelling unit owned by a vendor/developer/general contractor is occupied

as a rental unit, this policy commencement date is the date that the dwelling unit is first

occupied;

ii. If the vendor/developer/general contractor subsequently offers to sell a dwelling unit

that is rented, the vendor/developer/general contractor must disclose, in writing, to each

prospective purchaser, the date on which this policy expires;

iii. For multi-unit buildings not in a strata plan, the commencement date of this policy is

concurrent with the date of first occupancy of a dwelling unit in the multi-unit building.

3. Defect

Subject to the exclusions, conditions and terms of the policy and occurring and reporting during the

prescribed periods of insurance and within the limits of liability any construction, including labour and

material, that is contrary to the building code or that requires repair or replacement due to the negligence

of a vendor/developer/general contractor or person for whom the vendor/developer/general contractor

is responsible at law.

4. Driveway

A surface intended and constructed primarily to be used for vehicular access to or from a dwelling unit.

5. Duly Authorized Representative

Any representative authorized by the insurer to undertake work or perform functions on its behalf.

6. Dwelling Unit

A home, which is a building, or a portion of a building, that is newly constructed and intended for residential

occupancy:

a. that is a single, self-contained residence that usually contains cooking, eating, living, sleeping

and sanitary facilities;

b. that may contain a secondary suite if permitted by local bylaws.

The following homes are also included within this definition:

a. conversion of non-residential space to “for sale” residential units;

b. live/work units; and

c. equity co-operatives

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