Increasing Condo Insurance Premiums

The insurance market for residential real estate, especially condominiums, is facing challenges due to increasing property losses. As a result, insurers are either increasing premiums or deductibles or withdrawing from the market altogether. Rates are rising due to increasing losses from water damage, weather events, and fire, along with rising replacement costs. In a high-rise community, any fire and water claims are likely to affect multiple units, resulting in higher costs. Condo owners can minimize their fees by taking steps to minimize the number and dollar amount of insurance claims.