August 2016
Most Claims Avoidable
Water damage accounts for a majority of insurance claims.
Insurance Brokers of Canada (IBC) reports that half of every dollar paid out in property claims relate to water damage. In condo buildings almost all water damage claims relate to water seepage, pipe problems and broken water heaters.
Preventive maintenance and repairs could have avoided most of these claims.
Insurers are raising premiums and deductibles to cover the rising cost of claims. Condo corporations with more and costlier claims will soon be paying more. Condo corporations that are more proactive at limiting its exposure to water problems by undertaking regular maintenance and repairs, and educating residents about the topic, will be more effective at keeping their monthly condo fees lower.
Reducing the level and volume of claims helps keep costs down for insurers and condo corporations. Fewer internal disruptions and reduced complaints about water problems will also benefit condo corporations.
A poll of condo owners conducted by IBC found that 25% of condo owners did not know who handled maintenance and repairs in their building. Half of respondents did not understand what was covered by their condo corporation insurance. A third of respondents had never read their condo corporation documents.
