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.

[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.

[Cypherus]

Like jlousa stated, many stratas are opting for higher deductibles than higher monthly fees. Our strata deductible increased from $100K to $350K. It was egregious. Any building damage up to $350K is now on our hook as special levy assessments. The strata has also indicated to owners that they need additional insurance to cover a potential chargeback of stata deductible of $350K if your unit is held responsible for damage. Most insurers do not offer chargeback protection up to $350K. So many owners are furious.

[cairnstone]

Originally Posted by Cypherus

Like jlousa stated, many stratas are opting for higher deductibles than higher monthly fees. Our strata deductible increased from $100K to $350K. It was egregious. Any building damage up to $350K is now on our hook as special levy assessments. The strata has also indicated to owners that they need additional insurance to cover a potential chargeback of stata deductible of $350K if your unit is held responsible for damage. Most insurers do not offer chargeback protection up to $350K. So many owners are furious.

And depending on the bylaws any moneys owed in fines and levies have to be paid before maintenance fees so the unit is in default and will be liened and a foreclosure by default will occur when the owner renews morgage.

Condo unit insurance is not much different than rental insurance as it does not cover any common property. You have to get a rider for deductible to cover the strata. Also strata insurance only covers original grade flooring cabinets etc. So you also would need a rider for that also and have a lawyer specializing in insurance to look at the what is covered.

We had a flood in our unit once caused by the roofers. Damage was some what minor do to quality products but none of the damaged flooring was covered or millwork. I was glad i had cork floor left over to replace the damaged area and the crown molding. My policy covered water ingress from everything except a trade hired by the strata. Go figure as it would have been a cash positive claim. They fix your unit as it was and sue the strata sub trade.

[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