A Roof Over Your Head How Tarions Guarantee Fund Protects Ontarios - - PowerPoint PPT Presentation

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A Roof Over Your Head How Tarions Guarantee Fund Protects Ontarios - - PowerPoint PPT Presentation

Sep 11, 2023 395 likes •494 views

A Roof Over Your Head How Tarions Guarantee Fund Protects Ontarios New Home Buyers 1 Warranty funds go a long way POST-MOVE PRE-MOVE MOVE-IN DEPOSIT DELAYED CLOSING 7-YEAR WARRANTY PROTECTION COMPENSATION Deposit protections of

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SLIDE 1

A Roof Over Your Head

How Tarion’s Guarantee Fund Protects Ontario’s New Home Buyers

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SLIDE 2

Warranty funds go a long way

PRE-MOVE MOVE-IN POST-MOVE

DEPOSIT PROTECTION DELAYED CLOSING COMPENSATION 7-YEAR WARRANTY

Deposit protections of between $20,000 and (coming soon) $100,000.

$300,000 maximum coverage for every new home and condominium. 400,000≈ homes under warranty at any given time. 100,000+ homes under construction at any given time that are eligible for

deposit protection. 1

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SLIDE 3

What happens when warranty programs are not prepared?

The maximum possible loss to Ontario’s new home warranty program could be in the BILLIONS!

British Columbia

  • Bankrupt in 1999
  • Estimated $703

million in claims due to water penetration issues in condominiums

Quebec

  • Estimated $65 million

and counting in claims due to concrete deterioration

  • In 2016, the Prime

Minister committed $30 million over 3 years to help affected homeowners

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SLIDE 4

Where does Tarion get its funding?

Tarion is entirely self-funded

  • Initial builder registration

fees

  • Annual builder renewal

fees

  • Home enrolment

fees

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SLIDE 5

Guarantee Fund Assets Provide Support

$239 Million $248 Million $55 Million

Warranty Liabilities

For new home owner warranty coverage.

Equity

For future potential catastrophic events.

Deposits from Builders Held as Security

For managing builders’ warranty commitments.

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SLIDE 6

Making sure your warranty is protected

Tarion adopts best practices similar to those used in the insurance industry to ensure its financial position is strong. Tarion’s warranty liabilities fund is reviewed annually by an independent actuary. 5 Tarion closely monitors its Capital to help protect against losses from catastrophic events.

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SLIDE 7

So what does this all mean?

New home warranty programs operate with the ever present risk of catastrophic financial loss. A healthy Guarantee Fund is Tarion’s best safeguard against an uncertain future. Tarion applies industry best practices to ensure that its Guarantee Fund is able to cover future claims.

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SLIDE 8

Contact Us

1-877-982-7466

Connect With Us:

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