The increase in rates will affect the corporation/association (property/general liability) and the individual owners (household contents, betterments/improvements and liability).
Why are Condo insurance rates going up?
The factors helping drive up condo insurance rates in Canada in the last number of years are compounded by the costs of climate change and the pandemic. There has been a higher volume of claims related to more frequent severe weather events and by the surge in building material costs. Wally McNeilly, a broker with H.L. Hamilton Insurance LTD. noted that larger payouts resulted in more money being paid out than taking in. Many buildings are older requiring repairs and material costs are increasing especially for lumber and in turn, labour costs. The population is aging and unfortunately more mishaps are occurring that require repairs.
Demand was up, supply was down and renovation went through the roof.
It is not known if there is any impact of the COVID-19 pandemic on home insurance prices. However, more claims were coming from inexperienced renovators. More people were staying home during the pandemic allowing for an increase in renovations.
As building materials costs decrease, it is anticipated that condo insurance rates will stabilize. McNeilly advises to pick an experienced broker that can work effectively with today’s market and ensure underwriters are being supplied with the proper information to quote quickly with the required information including any improvements or updates to the building.
For over 20 years, Huron Shores Property Management has specialized in managing condominium complexes across Southwestern Ontario from Windsor to London.
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