Condominium/Strata Corporation Insurance Q & A

The Insurance Bureau of Canada (IBC) and the insurance industry acknowledge the affordability challenges faced by some condominium and strata corporations and owners. In response, they have developed a Condominium/Strata Action Plan to address these issues and stabilize insurance costs. The challenges in the commercial insurance market are attributed to factors such as severe and frequent weather-related claims, record-low interest rates, and capacity withdrawal in certain commercial product lines. The COVID-19 pandemic has further compounded these challenges.

Several factors impact the price of condo or strata insurance, including the type of construction and materials used, geographical location (risk of water damage from flooding or frozen pipes), claims history, and whether units are occupied by tenants or owners.

To assist condo/strata corporations, the IBC has launched the Condominium/Strata Action Plan, which includes a dedicated Risk Manager to help brokers and boards understand how insurers view risks. The plan also involves a National Task Force on Commercial Insurance to find solutions for affordable insurance, consumer education on managing insurance costs, and sharing risk management information through webinars with various condominium and strata corporation groups.

Condo or strata corporations with insurance-related inquiries can contact IBC's Business Insurance Helpline or visit dedicated websites for more information.