Developer Surety

Travelers Canada is a leading provider of surety and residential real estate products for builders and developers across Canada. These products, combined with the professional advice offered by our Underwriters, can play a key role in your new home building and land development program and are described more fully below.

Our products and services

Tarion Bonds (Available in Ontario)

Tarion is responsible for administering the Ontario New Home Warranties Plan Act, which outlines the warranty protection that new home and condominium builders must provide, by law, to their customers. Travelers Canada offers bonds to builders that satisfy Tarion’s security requirements. The bond is available for Tarion to recover deposit claims up to $20,000 and construction deficiency claims. Travelers Canada offers competitive and creative solutions designed to free builders from the constraints of tying up valuable credit facilities with a lender. These bonds typically require less cash collateral than letters of credit once a project is completed. For more information. please visit Tarion's website

Deposit Insurance

Travelers Canada provides insurance for deposits in excess of the Tarion warranty protection of $20,000 for condominium homes and $40,000 for freehold homes. This allows the builder access to those deposits for use in construction. In addition, we offer deposit insurance on projects that fall outside of the Tarion warranty coverage. This includes condominium conversions and commercial condominiums.

Equity Edge® New Home Deposit Bonds (Available in Alberta, British Columbia and Ontario)

Equity Edge® New Home Deposit Bonds are specifically designed to assist purchasers of new homes. These deposit bonds allow new home buyers to defer a portion of the deposit until the closing date of the purchase transaction. This encourages sales and helps the developer reach the pre-sale target sooner. It also alleviates the need for purchasers to borrow money or liquidate investments to secure a deposit.

Title Insurance

The New Home Title Guarantee Plan provides value and increased efficiencies for builders and purchasers of new homes. It provides purchasers with the added benefit of Title Edge® title insurance, which provides increased protection from title risks inherent in real estate transactions and a smooth legal closing at a substantially reduced cost. Learn more.

New Home Warranty and Deposit Protection Insurance (available in Alberta and British Columbia)

Travelers Canada provides the mandated 2-5-10 year home warranty insurance for purchasers of new homes through a network of more than 1,600 licensed builders. In 2005, the Real Estate Development Marketing Act was passed in British Columbia providing for Deposit Protection Insurance, which enables builders and developers to use deposit monies as an alternate source of financing. Travelers Canada is pleased to offer Deposit Protection Insurance to home warranty clients developing new condominium projects. 

Subdivision Bonds

Travelers Canada provides subdivision bonds as an alternative to letters of credit on behalf of larger residential land developers in order to secure land development and site servicing obligations with municipalities. These bonds are limited to those municipalities that will accept a subdivision bond in lieu of a letter of credit as security.

For more information about Travelers Canada’s Developer Surety solutions, please speak with your broker or contact one of our experts. 

To contact a member of our warranty team, please click here.