How To Get Real Estate Developers Insurance In Canada

Need real estate developer insurance during COVID? We can help.

A hard market can mean hard work when it comes to getting real estate developers insurance. COVID-19 has and continues to change the world we live and work in. That is to say, no industry is immune to the short and long-term impacts of the pandemic. A recent interview with a real estate insurance expert in Canadian Underwriter underlines this fact.

The expert sees challenges in the market. “At the same time insurers have a reduced appetite to take on real estate risks, real estate developers during a pandemic-induced economic recession have an aversion to investing a lot of money into risk-reduction measures. These twin dynamics are a recipe for a long and arduous hard market in real estate insurance lines.”¹

Meanwhile, insurance companies in Canada, “are looking for more information about risks associated with where developers are building, primarily in areas with a high flood risk.”²

Certainly, here at ALIGNED Insurance we understand the hard market and how to navigate it. Our insurance brokers are exclusively focussed on delivering business insurance solutions.

We work with more than 65 top insurance companies in Canada. And this means we know how to find solutions during hard markets.

Across Canada, our team understands the nuances of real estate development risk and risk management options.

Suffice it to say, we can deliver a real estate developers insurance quote that meets your organization’s specific needs.

Booming real estate development opportunities thanks to COVID-19

Boom or bust. COVID-19 is already having a lasting impact on how we live, work and commute in between. From Vancouver to Calgary to Toronto to Halifax, commercial office towers haven’t returned to 100% capacity. However, while commercial real estate builds may have slowed, residential real estate development is rising to meet consumer demand.

In a recent Toronto Life article, a real estate agent commented, “It seems like everyone wants a house right now, and there’s a good amount of people willing to leave the city. They don’t know if a second wave or another lockdown is going to happen, so having more space is a big theme. The request for outdoor space, especially a fenced-in yard for people with dogs, is so common that it’s practically a joke within our team.”³

And it’s not just an exodus to the suburbs or smaller cities within a few hours’ drive that’s changing the real estate market. Toronto real estate developers are responding to increased demand for new detached homes. According to blogTO, “New data released by the Canada Mortgage and Housing Corporation (CMHC) on Thursday shows that ground was broken on 654 new detached homes in Toronto throughout the month of September. This marks a year-over-year increase rate of 98 per cent over the same time period last year, which saw only 330 starts.”⁴

In addition, “the Building Industry and Land Development Association (BILD) reported last month that more new homes were sold across the GTA in August of 2020 than ever seen in the organization’s 20-year history.

Sales of new single-family homes, in particular, were up 355 per cent, year over year, and 139 per cent above the 10-year average in August of 2020.”⁵

With development and sales booming as a result of shifting priorities, both real estate firms and real estate development companies are facing unprecedented demand.

During changing times, it’s important to know that the insurance team you work with understands your specific industry.

ALIGNED Insurance brokers across Canada focus exclusively on aligning commercial insurance options for business only. When you are looking for insurance options, our brokers will deliver.

101 | What to know about real estate developers insurance

Regardless of the size or scale of your real estate development, you need insurance. This is because many things can go wrong. You need to protect yourself and your firm as well as your clients and customers.

Canadian real estate developers should be aware of available coverages and how these can be aligned to mitigate your risk.

For instance:

• Auto 
• Builders Risk
• Commercial General Liability 
• Commercial Property 
• Course of Construction Insurance
• Cyber 
• Employee Theft 
• Employment Practices Liability 
• Errors and Omissions
• Professional Liability Insurance
• Property Insurance
• Umbrella Liability 

And don’t forget drone insurance

If your real estate development firm is mapping out new locations using drones, it’s important to also get coverage.

Using a drone – or unmanned aerial vehicle (UAV) – requires a a Special Flight Operations Certificate as well as compliance with forth by Transport Canada rules. Additionally, your business must follow rules found in the Canadian Aviation Regulations and respect trespassing and privacy laws when operating a drone.

Whether you are moving materials, taking aerial footage of a site, using a drone to ensure worker safety or securing sites against trespassing and theft, drone insurance is essential.

Get aligned with commercial insurance experts now

We know the market. We have the relationships. We can get your business insurance aligned. Across Canada, we can help you secure the best insurance products, services and solutions for your real estate development firm. We know what products real estate developers need to manage risks and forge ahead with confidence.

The ever-changing Canadian real estate keeps making headline news. With fluctuating prices, changing consumer demands due to COVID-19 as well as affordability concerns, real estate is top of mind with everyone from millennials to retiring baby boomers.

A hard market can mean hard work when it comes to getting real estate developers insurance.

Talk to us about your real estate development insurance needs.

We can help you get a real estate developers insurance quote that delivers the solutions your business needs.

Source(s):^1,2 CanadianUnderwriter.ca: What’s unique to this hardened real estate insurance market ; ³ TorontoLife.com: “People are willing to commute two days a week to get more space”: We asked a realtor about recent market trends ; ^4,5 blogTO.com: Toronto developers are rushing to build more detached homes as demand skyrockets ;