Condo Insurance Costs Skyrocket

[WarrenC12]

Originally Posted by Vancouverisfalling

No, there isn't. You're making the assumption that your particular circumstances are representative of the whole, which they are not.
The misinformation here is by you, as you are leading people to believe these examples are the norm, which they are not.

Cool story bro. You've got 7 posts on here and a biased username. Forgive me if I don't take anything you say seriously.

[WarrenC12]

Originally Posted by Vancouverisfalling

Exactly, but funny thing about new buildings is, they turn into older buildings pretty fast, at which time they no longer will be offered the reasonable quotes.

The 20 yr old building has a lower quote than the 3yr old building. Probably relating to claim history more than anything.

[cairnstone]

There definitely not a one size fits most approach to door per door costs. Most strata management companies charge a per door rate and that rate varies depending on how involved they get with the strata. Then an every Elevator adds a cost add in pools garden ground maintenance etc.

Current new construction concrete buildings are at $.49 cents give or take. Many stratas are also play with the maintenance fees for a few reasons. They pad the fees so they can get ahead of future works or they are keeping the fees low so units will be able to flip especially common in smaller older units and you see many investor owned units.

[misher]

Originally Posted by cairnstone

There definitely not a one size fits most approach to door per door costs. Most strata management companies charge a per door rate and that rate varies depending on how involved they get with the strata. Then an every Elevator adds a cost add in pools garden ground maintenance etc.

Current new construction concrete buildings are at $.49 cents give or take. Many stratas are also play with the maintenance fees for a few reasons. They pad the fees so they can get ahead of future works or they are keeping the fees low so units will be able to flip especially common in smaller older units and you see many investor owned units.

Minimum rate per a door was $20 set in 2012. Has gone down since as certain companies started charging lower than agreed upon and then making it up on extras, options, and plain corruption. That industry is a race to the bottom.

[WarrenC12]

Originally Posted by misher

Minimum rate per a door was $20 set in 2012. Has gone down since as certain companies started charging lower than agreed upon and then making it up on extras, options, and plain corruption. That industry is a race to the bottom.

Sounds like the free market at work, breaking through some collusion. Funny how differently you see something when you work in the industry.

[Vin]

I think those in the older woodframe buildings are going to be hit the hardest. So if you can afford it, don't get a woodframe. Get a well-priced concrete building built by a reputable developer instead.

[cairnstone]

Originally Posted by Vin

I think those in the older woodframe buildings are going to be hit the hardest. So if you can afford it, don't get a woodframe. Get a well-priced concrete building built by a reputable developer instead.

For tenants insurance when I moved to a 10 year old wood frame from a 45 year old wood frame in Queensbough from lougheed mall I saved 12 bucks a month. Main reason was sprinklers.


Its hard to calculate a true cost per square foot between developers and between concrete and wood. Wood is cheaper but the that does not indicate that its of a lower quality. Both still could need repiped or major systems upgraded at the same time. Both could have the same costs on roofing etc. Wood frame typically needs a half life upgrade sooner.

Here most buildings built mid 80s forward were all rainscreened and had window, railings etc upgraded. Now we are seeing the same thing happening to concrete buildings some from the 70s but also the 80s. One thing to consider is that repairs go up exponentially the number of floors you are doing

[rofina]

Originally Posted by Changing City

It's years since I lived in a condo, so I have no idea what this means in cost terms. Obviously insurance cost increases for a strata corporation of 50% or more means an increase in strata fees to cover those higher costs. How much of a typical strata fee is the strata corporation's insurance cost? If a condo owner pays $500 a month in strata fees is the amount covering insurance $20? $50? more? It might not be a huge increase to cover this higher insurance, but I really have no idea.

The bigger issue seems to me to be the much higher deductable. That means any strata owner 'responsible' for an insurance claim (overflowing bath, for example, or badly plumbed replacement dishwasher) then that owner could now be on the hook for a bill of $100,000. They might have insurance to cover it - although I bet those personal insurance costs are going up as well - but my understanding is that they don't have to have insurance. That could leave the strata on the hook for the cleanup costs and then pursuing the owner for the deductable, through the courts if necessary. That would seem to require much more in a strata's contingency fund for eventualities like this, if it's going to be responsibly managed.

No idea on the typical, but on our new (2016) building the insurance makes up approx. $30,000 on a $130,000 budget, or nearly 25%. We had a 46% YoY increase in insurance costs. Its an extremely significant cost.

[rofina]

Originally Posted by Vancouverisfalling

100K Minimum Deductible. Do you understand the ramifications of this? I don't think you do. It means condo owners effectively don't have insurance.

For this same reason Strata Fees are going to rise much higher, not tomorrow, but over years. Not decades, years.

The higher insurance costs pale in comparison to the effects of the insane increase in deductible costs.

Plenty of buildings have had 100k water damage deductibles already.
My previous building has a 50k deductible back in 2010.

It just means your homeowners insurance has to cover the obscene deductibles.