How to Reduce Condo Corporation Insurance Premiums
With the change in the Ontario Condominium Act in 2017, alterations were made to the laws governing condominiums insurance coverage. The significant disparity evident is that condominium owners cover damages to the common areas in their establishments. Damage to the personal spaces 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 that ensure lessening of premiums to reduce the enormous costs incurred. At My Insurance Broker, the company deals in insurance coverage of all nature. The company has especially developed condominium insurance and managed to salvage the condominium owners who have had to pay high premiums. Therefore, it offers the following insights on how exactly one can reduce the Condominium Corporation Insurance Premiums in Ontario.
Reasons for the Skyrocketing Premiums
- Increase in unprecedented repair and maintenance costs
Often, the problems experienced in condos are widespread, affecting multiple units, thereby necessitating repairs to be done on numerous units, which is expensive.
- Insurance coverage
The plummeting insurance market, since the industry, has many insurance providers in the market. Insurance providers have adversely been affected due to their multifaceted coverage, and 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 Premiums in Ontario have hence ever since spiraled.
Ways of Reducing the High Premiums
- Coming up with laws that govern insurance coverage
Earlier on, condominium owners had an inclintion to cover individual costs such as the countertops and the flooring stipulated in the initial act. However, with the subjected changes within the statute, the condos’ owners are not liable to deductibles within the leased units’ personal spaces. 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. Condominium Corporation Insurance Premiums in Ontario therefore will be held accountable to the deductibles if the cause of the damage is solely due to the owner’s negligence. Even so, the only charges that can be added onto the tab of the condominium owner should be caused by natural causes and are insurable, such as floods and fires.
- Hiring professional plumbers
As a condo owner, it is vital that all the plumbing needs to be done before the tenants occupy the unit. The role of 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 to the entire unit.
- Periodically replace the water heating systems
Water heating systems are prone to wear and tear and are susceptible to damages caused due to their usage for long periods, necessitating routine maintenance and repairs that are not cost-effective. Thus additional strain is added on the premiums.
- 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 as $2 million. This way, upon exhaustion of funds, the tenant will cater for the repairs and deductibles out of their own pockets.
Conclusion
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.