Fenn & Fenn Insurance Practice Inc. is pleased to announce the availability of Tarion Warranty Corporation Bonds and Excess Condominium Deposit Insurance (ECDI) through our insurance and surety partners. Another specialty service that Fenn & Fenn Insurance Practice’s Construction Keystone service provides to its Construction and Development Industry clientele. Use us as your representative to negotiate your Tarion Bonds and ECDI. Don’t tie up your cash in Letters of Credit, consider Tarion bonds and ECDI as an alternative, after all, they are acceptable to Tarion Warranty Corporation. For more information see Tarion Builder Bulletin 28
We’d be pleased to receive your inquiries at -1 866 269 879 or Hello@fenninsurance.com
Tarion Warranty Corporation Bonds
A Tarion Warranty Corporation Bond is a form of security accepted by the Tarion Warranty Corporation for condominium Developers in lieu of cash or letters of credit. The amount of security required by Tarion Warranty Corporation is $20,000 per unit. The bond provides protection to Tarion from any deposit losses or risk up to $20,000 per unit, and after title transfer, the subsequent one-year and two-year warranty coverage provided by Tarion to purchasers.
Excess Condominium Deposit Insurance
Under the Condominium Act, 1998 all purchaser deposits must be held in trust until transfer of title to the purchaser. This constraint restricts the builder from accessing these deposits during the construction phase of the project. The Condominium Act, 1998 does however permit builders to withdraw these monies from trust as long as the developer provides an Excess Condominium Deposit Insurance policy for the project. This policy provides protection to the purchasers of new condominium units in excess of the initial $20,000 that is covered by Tarion.
These products are available to developers meeting the following criteria:
– Low-rise and High-rise Condominium Experienced Developers.
– A proven track record of successful completion of previous condominium projects – evidence required;
– A strong financial position, both corporately and personally – financial information will be required;
– A knowledgeable, seasoned and competent development team – team credentials may be requested;
– Strong demonstrated construction capabilities – a capability statement, CCA Form 11 or other evidence may be required.
Underwriters vary in risk appetite and information requirements. Fenn & Fenn acting as your broker will co-ordinate placement to help you determine the optimum Surety/Insurer for your project.