Developer Surety
Efficient risk protection to maximize your resources and capital
Developers need a surety partner with the capacity and expertise to meet a wide range of needs unique to commercial and residential development projects.
Travelers Canada has the resources to support your project throughout its life cycle, from site development through successful completion, with performance warranty and deposit protections that provide security to municipalities, investors and home buyers.
In addition, developer surety bonds are a cost-effective alternative (where permitted) to letters of credit and traditional bank financing, enabling you to allocate more resources to your development project while building access to credit for the next one. Not only do we support your project, we support the growth and success of your business.
For over twenty years, our surety products have been important economic instruments to communities across Canada, paving the way for progress.
Who is this right for?
- Land developers
- Low rise home builders and developers
- High rise home builders and developers
- Commercial condominium developers
Find what fits
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, which must be provided prior to the sale of any condominium units.
The bond is available for Tarion to recover purchaser deposit claims up to $20,000 for each condominium unit in the event that the project is not completed and the builder is unable to return deposits OR perform its obligations under the agreement of purchase and sale as well as for construction deficiency claims.
Travelers Canada offers competitive and creative solutions for a developer to utilize deposits as a source of financing in a project. Utilization of deposits reduces the amount of traditional bank financing, in turn reducing interest costs, improving a developer’s bottom line.
Travelers Canada provides insurance for deposits in excess of the Tarion warranty protection of $20,000 for condominium homes and up to $60,000 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 such as commercial condominiums.
Travelers Canada provides the mandated 2-5-10 year home warranty insurance for purchasers of new homes through a network of more than 2,100 licensed builders. Travelers Canada also offers Deposit Protection Insurance to home warranty clients developing multi-family projects.
For Residential Home Warranty products such as 2-5-10 New Home Warranty, Deposit Protection Insurance and Equity Edge, head to our Home Warranty Hub.
Travelers Canada provides subdivision bonds as an alternative to letters of credit, freeing up valuable borrowing capacity, 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.
An exclusive portal for registered Travelers builders.
TRU Builder™ is a one-stop portal for Travelers Canada builders and developers. Once you’re registered, you can enroll new homes, review warranty forms, access builder/homeowner bulletins and other resources and manage all of your warranty needs.
Related surety products & solutions
Get the coverage you need for your business.
Commercial surety
Support your business with a surety program tailored to your unique needs. We provide practical bonding solutions for businesses operating outside of construction.
Contract surety
Our contract surety team ensures that decisions are made locally, based on an understanding of the distinct economic and construction environments inherent in each of the regions that we serve.
Project loss insurance
Construction projects involve a large amount of risk, even for the very best contractors. A sizeable loss on a project can lead to financial distress. PLI is designed to help contractors recover from this loss.
Find a broker
Get the personal service and attention a broker provides. To learn more about options in your area, find a Travelers Canada broker near you.
Claim centre
Report a surety claim
The business or organization you contracted with is in default of the contract. Now you need to file a claim against the surety bond. Throughout the entire process, we guide you through the steps with integrity and professionalism.
Resources
Surety articles to guide you
Surety Insights
What Is a Surety Bond?
Discover the three most common types of surety bonds for your business.
Surety Insights
Preparing Your Construction Site for Severe Weather
Severe weather damage can add both cost and time to a construction project. Learn how to help protect your construction site from severe weather.
Surety Insights
5 Things to Look For in a Commercial Contract Surety Provider
Here are important differentiators to consider that may help you choose the right bond carrier for your needs.
