Additional Residential Real Estate Products

*New Home Warranty policies are underwritten by The Travelers Insurance Company of Canada. We do not offer New Home Warranty coverage in Québec. Warranty coverage is currently only offered in Alberta, British Columbia and Saskatchewan.

Deposit Protection Insurance (DPI) is a residential real estate product benefiting member builders in British Columbia and Alberta. DPI aids developers with financing costs by providing these benefits:

• DPI permits an alternative source of funding to be used for development and does not tie up valuable credit lines or cash resources.

• The cost of a DPI facility may be significantly less expensive than the costs of secondary or mezzanine financing.

The Equity Edge™ New Home Deposit Bond helps ease the financial burden of purchasing a home in a development project. The bond is available to buyers in "pre-sale" development projects. A member builder accepts the bond as a portion of the deposit required by the sale agreement. By providing a bond, buyers are able to keep more money in their pockets during this early stage of purchasing by deferring a portion of the deposit amount until the development project is complete.

Travelers reviews applications to confirm the buyers have equity to back-up the bond and are financially able to complete the purchase. The bond can replace up to half of the total required deposit. To qualify for a bond, Travelers Canada requires a buyer to contribute a minimum deposit of $10,000. The maximum bond amount available is $100,000. Only one bond can be issued at a time for a buyer or household.

If you are interested in using Equity Edge, please contact an Equity Edge underwriter at 1.800.555.9431 or equityedge@travelers.com.

• Equity Edge™ application form & indemnity agreement
• Equity Edge™ information sheet
• Equity Edge™ FAQ sheet

When purchasing a new home, find out if your property comes with a new home warranty backed by Travelers Canada.

Development Bonds are an alternate form of security that supports the performance obligations incurred in respect to Development Agreements (these may include the grading, servicing and development of real estate projects). Although many regions in North America have been accepting Bonds in lieu of cash deposits or letters of credit, various municipalities in Alberta have now adopted their use.

A developer’s working capital is freed-up for greater liquidity, which can be used for reinvestment into other projects. Unlike letters of credit, bonds are generally unsecured credit, meaning the surety companies typically secure them with an indemnity agreement and do not restrict or utilize bank operating lines. They are not included in lender’s debt covenant calculations and do not tie up capacity in lending agreements. When a developer seeks a letter of credit, it comes directly out of their operating line or cash, so the impact on their financial statements and cash position is immediate and affects working capital.

Surety bond rates can be substantially lower than the letter of credit rates, depending on the structure of each specific deal.

A bond binds a developer to the obligations of a development agreement just as easily as a letter of credit does.

Bonds can be easily transferred, similar to letters of credit.

If a developer is called into default, bonds can be liquidated just as easily as letters of credit.

Security reductions for bonds are handled the same way as reductions for letters of credit. Travelers Canada has staff with numerous years of experience in lending, insurance, warranty and construction. For further information please contact one of our Underwriters at 1.800.555.9431 or email warrantyunderwriting@travelers.com.

Travelers Canada provides the legislated 2-5 Year Home Warranty coverage for larger products being repaired by fully qualified building envelope renovation contractors under the guidance of professional and knowledgeable building envelope consultants.

Our warranty products are competitive, and we have established a roster of building envelope consultants who have the proper expertise and who carry professional liability insurance. Only those building envelope renovators who have met the stringent underwriting criteria and who are bondable are approved members with Travelers Canada.

To learn more about a Building Envelope Renovation Warranty or how to become a member renovator, contact Jan Rasilainen, Assistant Vice President, Technical Services.

Travelers Canada provides the most comprehensive third party 2-5-5 renovation warranty in North America. Warranty coverage is available to homeowners who contract with a Travelers Canada approved member builder. This provides peace of mind that the renovation is performed by a contractor who has undergone our stringent underwriting process and that the work is backed by a leading insurance provider.

A 2-5-5 Renovation Warranty covers:

2 Year Materials & Labour Warranty

• First 12 months - coverage for any defect in materials and labour
• First 24 months - coverage for any defect in materials and labour supplied for the electrical, plumbing, heating, ventilation and air conditioning delivery and distribution systems.

5 Year Building Envelope Defects Warranty

5 Year Structural Defects Warranty

The renovation warranty covers only the aspects of the renovation undertaken by the approved builder.

Download a fact sheet or contact one of our underwriters for further information.

*Offered in Alberta only.

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