British Columbia condos are struggling with insurance increases of 50 to 300 percent according to the Condominium Home Owners Association of B.C.
Deductibles are being affected with buildings having had a deductible of $10,000 or $25,000 now dealing with $100,000+ deductibles. With a $100,000 deductible and $75,000 in damage, the corporation is likely to hold an owner responsible for damage rather than submitting an insurance claim. If an owner is uninsured or their policy does not cover this level of deductible they become personally responsible for the cost of repairing damage.
Part of the reason for these increases may be a lack of insurance providers. Another may be the cost of damage from severe weather, wildfires and flooding.
While Ontario communities have yet to deal with insurance increases of this magnitude, the cost of insurance is on the rise. When insurance becomes too expensive, or deductibles sufficiently high that only the most serious of damages result in an insurance claim, there may be limited value in maintaining coverage.