July 2025
Insurance carriers are becoming more particular about the risks they choose to insure. Claims are one of the primary considerations they use when deciding to renew or accept a condo building policy.
Claims History
The fewer claims you have, the more favorable your property’s risk appears to insurers.
A major claim from fire or water damage, for example, is more favourable to numerous small losses. Recurring claims for similar issues, such as flooding, may cause an insurer to conclude that there is a problem with plumbing, building maintenance or building practices. They can choose to substantially increase your premium or eliminate the risk by not renewing your policy.
Smaller Claims
It can be advantageous to avoid filing a claim when the payout is under $5,000. Any claim that gets paid out goes against the corporation and could increase future premiums. Choosing not to file smaller claims could keep insurance premiums and deductibles from increasing.
Damage Less Than Deductible
When damages don’t exceed the policy’s deductible, there is no value in filing a claim. The deductible will still be paid by you and there will be an additional claim in your history. A contractor can advise on repair costs to help you make this determination.
Only File for Covered Losses
Insurance only covers sudden and accidental losses. Damage that appears to have been from long-term wear and tear, deterioration, or lack of proper maintenance is likely excluded. If unable to identify the specific time of damage, coverage for a claim may be denied.
Check with your Insurance Agent
Your insurance agent can help determine if your damage or loss is covered prior to filing a claim. Once a claim has been filed, it will be reported and appear in your history.
