With the change in the Ontario Condominium Act in 2017, laws governing insurance coverage of condominiums were altered. The significant disparity evident is that condominium owners cover damages to the common areas in their establishments. Damage to the personal areas of the units is catered for by the occupant of the unit. Even with these changes benefiting condominium owners, the move has been detrimental because the premiums have drastically risen. Condominium owners have thereby been devising ways in which the premiums can be reduced.
Reasons for the Skyrocketing Premiums
- Increase in unprecedented repair and maintenance costs
The problems experienced in condos are often widespread, affecting multiple units, thereby necessitating repairs to be done on various units, which in turn is expensive.
- Insurance coverage
The insurance market has drastically hit with so many insurance providers being available in the market. Even so, the insurance providers have adversely been affected due to their multifaceted coverage, and they are prone to making more losses. Thus, they have been forced to reduce the scope of their coverage; hence condo owners have been adversely affected. The costs of the Condominium Corporation Insurance in Ontario have hence ever since spiraled.
Ways of Reducing the High Premiums
- Coming up with laws that govern and state the coverage of the insurance
Earlier on, condominium owners were forced to cover certain costs, such as the countertops and the flooring. The owners of the condos are not liable to the personal spaces of the leased units. The laws that are put in place ensure that the unit’s occupant is responsible for such costs. This move is merely a mitigation tactic on the part of condo owners to minimize collective risks.
In addition to this, the laws put in place ensure that the owners of the units are liable to partial repair and maintenance costs. Therefore, Condominium Corporation Insurance in Ontario will be held accountable to the deductibles if the damage was caused due to the owner’s negligence. The only charges that can be added onto the tab of the condominium owner are caused by natural causes and are insurable, such as floods and fires.
- Choosing the best Insurance policy
Whenever you get condo insurance, the costs are one thing that you will need to keep in mind. As a condo owner, you need to manage costs so that they don’t take on any expenses that can jeopardize finances. Several factors, such as construction, location, insurance deductibles, and loss history,will be evaluated before providing a policy. Anyone who owns a condo will need to get this insurance coverage and, therefore, need to find the most affordable option. One of the best ways to find affordable condo insurance is to work with brokers. Condo insurance brokers can help you find the lowest premiums and save money on insurance costs. With the right insurance company, you can also get a few discounts, such as loyalty, renewals, and free claims. A condo insurance broker will also help you find the policy that best suits your needs and budget.
- Hiring professional plumbers
As a condo owner, it is vital that all the plumbing needs to be done before the tenants occupy the unit. Plumbing should not be left out to the tenant since, in most cases, they will look for plumbers who will get the job done haphazardly, which in the long run may cause water problems for the entire unit.
- Instill Liability Limits
Insurance providers have a maximum threshold for covering risks. As a condo owner, one has to put in place regulations governing and ensuring that the annual maximum liability of each unit tenant is $2 million.
The proliferation of increased condominium premiums has been a significant stumbling block to condominium owners. However, to mitigate these heightened premiums, the following measures have to be put in place. Reach out to us today and dissolve all your condominium premium woes.
At My Insurance Broker, the company deals in insurance coverage of all nature. The company has managed to salvage the condominium owners who have had to pay high premiums. Therefore, it offers insights on how exactly one can reduce the Condominium Corporation Insurance in Ontario.