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Release date: November 4, 2019
Concerns Relating to Increasing Costs and Deductibles in the Condo Insurance Market
CCI-Toronto is aware that there has been much discussion and concern in the Ontario condominium market related to significantly increasing premiums and deductibles in insurance policies.
Following the major weather events that occurred in the GTA in 2018; this year in particular has been a difficult one for condominiums with respect to the renewal of existing insurance policies. We are also aware that there may be some communities that are no longer able to obtain all mandatory insurance policies under the Condominium Act, 1998.
Other Canadian markets, such as Alberta following the Fort McMurray fires in 2016, are facing similar challenges. Our goal is to assist the Ontario market in implementing positive changes.
How CCI-T Can Help
The CCI-T Legislative Committee has been discussing advocacy and educational opportunities to assist the condominium market in overcoming these challenges.
Our focus in this regard will be on the following issues which the committee has identified:
- Increasing deductibles can have a major impact on the financial position of a condominium corporation in the event of a claim.
- Large insurance deductibles may create an untenable situation for Owners facing chargebacks related to insurable losses.
- Significantly rising premiums create unforeseeable and uncontrollable increases in common expenses.
- There is a lack of fair competition in the insurance marketplace – limited number of brokerages specializing in condominiums and few insurers providing pricing options.
- Can changes such as mandatory owner insurance and a regulated “standard unit” provide relief?
CCI-Toronto has participated in an initial conference call with the Ministry of Government and Consumer Services to discuss the above. We intend to continue this discussion following feedback from our members.
We Want to Hear from YOU!
Has your condominium community been impacted by rising rates, deductibles, or lack of insurance? Are you an insurance professional wanting to lend your voice to effecting positive change? Your voice will assist the Legislative Committee in focusing our advocacy efforts, and in demonstrating the impacts on condominiums.
Sharing your story can help make a significant and positive future impact for all condominium corporations in Ontario.
Write to us with your experience at info@ccitoronto.org at your earliest convenience.
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