Roughly 10,000 Condo corporations in BC and Ontario could be impacted by insurance rate increases, which are being driven by an increase in the condo board deductible.
Condo owners are seeing deductibles increase up to 600%! Condo board deductibles jumping from $30,000 to $250,000, with insurance only covering around $50,000, could leave condo owners in a tough financial position. Ensuring adequate insurance coverage for condo board deductibles has never been more important!
Why the increase?
- Increased number of claims
- Increased number of condo/strata developments
- Rebuilding costs have increased
- Older buildings are beginning to show wear and tear, making them more vulnerable to failures with electrical, plumbing etc.
- Local markets are affected by increasing global losses from catastrophic events such as forest fires, floods, and earthquakes
Condo owners insure their contents in addition to upgrades made to their unit. These policies include other critical coverages such as liability for damages from losses that originate in their unit and extend to other units or common areas. Condo insurance can cover a portion of your condo board’s deductible in the event of a significant claim. Therefore, if condo board deductibles increase, condo owners will require greater coverage to account for their proportionate share.
If a claim is lower than a condo board’s deductible, it will not be covered by their policy. As per condo boards bylaws, they are likely financially responsible for damages to common property while condo owners are responsible for covering damages to their individual units. As it stands, many repair and replacement costs traditionally covered by the condo board insurance policy will now be passed on to unit owners.
Nuera Insurance has a solution for condo owners that will not break the bank. Partnering with a third party we have a product that will provide you with coverage should you get a letter from your condo board asking for your part of the $250,000. To ensure you are covered, complete a quote online and call one of our Live Advisors to discuss Condo Board Deductible coverage. Peace of mind, within minutes!