It is safe to say that condo insurance is becoming a sore spot
for condo corporations not only in Ontario but across Canada. Condo
corporations have seen soaring premiums and deductibles. In some
jurisdictions, it has been reported that premiums have risen
780%.
The reason for the increase seems to be multi-faceted including,
but not limited to, higher property values, reduced number of
insurers, rising costs for insurers and drastic weather
patterns.
The issue is so pressing that the Insurance Bureau of Canada is
engaging a risk manager to make recommendations to condo
corporations to reduce risks. The problem, however, is that the
Insurance Board of Canada has no cap on condo premiums and the
government does not require insurers to apply for rate
increases.
